Tesla Motors has confirmed that it has reached a settlement with former CEO Martin Eberhard to end a legal dispute.

Martin Eberhard, a Tesla founder and former chief executive, sued the company in May, accusing the current CEO, Elon Musk, of defaming him.

Musk has publicly blamed Eberhard for cost overruns and delays on the Tesla Roadster.

Terms of the settlement between Eberhard and Tesla were not disclosed.

"I'm glad that we could put this behind us and direct all our energy toward making Tesla one of the great car companies of the 21st century," Musk said in a statement.

In the statement issued yesterday, Musk praised Eberhard.

"Industry-changing efforts are virtually impossible. Without Martin's indispensable efforts, Tesla Motors would not be here today," Musk said.

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