SEC Asks Judge to Close $40 Million Musk-Tesla Fair Fund After $41.53 Million Paid Out

The US Securities and Exchange Commission asked a federal judge in Manhattan to close a $40 million Fair Fund built from civil fines paid by Elon Musk and Tesla, saying distributions are finished. MarketScreener reported the filing on November 10, 2026.

How the Musk-Tesla Fair Fund Paid Out

The fund traces to the SEC's 2018 case charging Musk with securities fraud over an August 7, 2018 post in which he said he had "funding secured" to potentially take Tesla private. The posts caused Tesla's shares and trading volume to spike, with the shares closing more than 6% higher than when he began posting, and they later fell after it became clear Musk had not lined up financing.

Musk and Tesla each paid a $20 million civil fine, with sums designated for investor victims of the alleged fraud. Neither defendant admitted wrongdoing. Musk also agreed to let Tesla lawyers review some Twitter posts in advance and gave up his role as chairman.

The SEC said a claims administrator distributed $41.53 million, including interest and after deducting fees, to 3,350 eligible claimants. Those claimants received 51.7% of their approved claims because their losses exceeded the Fair Fund's size, and another 3,046 claims were rejected.

"Distribution of the Fair Fund is now complete," the SEC said. The approximately $449,000 remaining in the Fair Fund will go to the US Treasury.

The case is separate from the SEC case accusing Musk of waiting 11 days too long in March and April 2022 to disclose his early purchases of Twitter shares. Musk settled that case by having a trust in his name pay $1.5 million, also without admitting wrongdoing, and a federal judge approved that settlement in July while expressing "significant misgivings" about whether the SEC let Musk off too easily.

Tesla's Berlin Production Increase

According to akta.pro company records, Tesla announced in October 2026 a 20% production boost at Gigafactory Berlin-Brandenburg to 7,500 vehicles per week starting that month, with 1,000 additional vehicle production hires plus 1,500 for battery cell manufacturing. The same records list full-year 2025 revenue of $94.8 billion, the first annual revenue decline in company history at 3%, and 1.64 million vehicle deliveries in 2025, an 8.6% decline from the prior year.

Earlier Tesla Regulatory and Product News

On November 10, 2026, Stocktwits reported that Tesla urged NHTSA to modernize FMVSS 108 lighting rules for camera-based matrix LED headlights, arguing a proposed advisory committee gives automakers insufficient representation with only two seats for vehicle manufacturers. The same day, Business Insider reported that Tesla chief designer Franz von Holzhausen said the company removed movable sunroofs from Model S and other models because data showed drivers rarely use them, citing manufacturing complexity. Forbes reported that Tesla said unsupervised Full Self-Driving for private cars will be available in mid-2027, but only within its robotaxi service areas.

What Comes Next for Tesla

Tesla has said unsupervised Full Self-Driving for private cars will be available in mid-2027 within its robotaxi service areas, and its Berlin plant production increase to 7,500 vehicles per week was set to start in October 2026.