Tesla Inc.'s Elon Musk refused to pay a nominal fine and give up the role of chairman for two years as part of a settlement with the U.S. Securities and Exchange Commission, CNBC reported on Friday, citing sources.

The settlement would also require Tesla to appoint two new independent directors, CNBC reported.

Musk reportedly refused to sign the deal as he felt by settling he would not be truthful to himself and he wouldn't have been able to live with the idea that he agreed to accept a settlement and any blemish associated with that, the report said.

Tesla (TSLA) did not immediately respond to a request for comment.