On Friday, it had been reported that the Securities and Exchange Commission had initiated a lawsuit against Elon Musk, the CEO and co-founder of Tesla for trying to mislead investors about potentially privatising the firm.
The SEC had also sought to remove him from his current position. However, according to a Reuters report, the SEC had offered the 47-year-old a deal to step down from his position along with paying a fine to the SEC but that Musk had declined to accept the deal as he didn't want to leave his position in the company.
In addition, Musk has also engaged the services of well-known lawyers such as Stephen Best (of Brown Rudnick) and former US assistant attorney, Christopher Clark (who is currently a partner with Latham and Watkins) to defend his case.
The Tesla board of directors had stood by Musk and had said that they supported him. Meanwhile, expert analysts shared that the deal offered by the SEC should have been accepted by Musk. In addition to this lawsuit, Musk has also found himself staring at proceedings initiated by the American department of justice.
The problem for Musk began after a seemingly innocuous tweet (on 7th August) in which he had talked about making his company private. Speaking on the lawsuit filed by the SEC, Musk had stated, "This unjustified action by the SEC leaves me deeply saddened and disappointed.
I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way." A few days ago, Tesla had lost out on a huge investment chance by the Saudi Arabian wealth fund when they opted to invest in the company's rival.