Tesla Motors CEO Elon Musk and co-founder Martin Eberhard have settled their differences, putting an end to bitter legal dispute.

The dispute was over the issue: whether Elon Musk or Martin Eberhard got the right to call himself the founder of the company.

Earlier in May, Eberhard had filed the suit against Elon Musk, alleging libel plus slander as Musk had started calling himself the founder of the company.

Tesla, California-based electric car company said in a statement that both parties reached an agreement. The statement both of them co-founders of the company.

However, the terms of agreement were not disclosed by the company.

The company quoted Elon Musk, saying, "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."

Both, Elon Musk and Martin Eberhard declined to comment on the development.