UBS also claimed in a report that Tesla's $35,000 Standard trim Model 3 would cause the company to lose $5,900 on every vehicle sold.
In an tearful interviewwith The New York Times, Musk said this has been "the most hard and painful year" of his career.
"This past year has been the most hard and painful year of my career", he told the newspaper.
The New York Times report said another possibility under consideration is that SpaceX would help bankroll the Tesla privatisation and would take an ownership stake in the carmaker, according to people familiar with the matter.
The Times report said board members had raised concerns over his "workload but also about his use of Ambien", a sleeping drug. "It is clear that Defendant Musk Tweeted materially false and misleading information regarding the Going Private Transaction to exact personal revenge and "squeeze-out" the short-sellers who had purportedly been badgering him for months", the complaint reads.
You can get the idea of the plight of Elon Musk from his statement- "The worst is over from a Tesla operational standpoint".
He has since said he is searching for funds for the effort.
Tesla's chief also said his friends "are really concerned" about him.
He said he did not intend to give up his roles as chairman and CEO but if there was someone who could do the job better, "they can have the reins right now".
Tripp's tip to the SEC was filed after he was sacked, sued by Tesla for hacking trade secrets and transferring internal documents to third parties.
Tesla didn't respond to requests for comment from The Associated Press early Friday.
But he told the newspaper that he wrote the tweet inside a Tesla Model S while it he was driving to the airport, and that no one else reviewed it.
Furthermore, the price of $420 a share was the result of a rounding up, and Musk made it clear that "he was not on weed". "Weed is not helpful for productivity", he told the Times. Musk later explained that his claim was based on repeated and ongoing conversations with the Saudis and tweeted the names of financial and legal advisors he said he was working with on the proposal to take Tesla private.
The company could face sanctions if regulators find it did not accurately portray production delays to investors.
The telephonic interview that lasted over an hour saw Musk choking at times while discussing the story behind the tweet amongst other things that are affecting his physical and mental health.
Hansen alleges Tesla failed to disclose that it received written notice from the U.S. Drug Enforcement Administration about a Tesla employee possibly engaged in selling cocaine and crystal methamphetamine from the Nevada factory on behalf of a Mexican drug cartel, according to Meissner who did not release the whistleblower filing he said his client made to the SEC.