That is borne from a multiple reasons - greed is one, but the most common thread seems to be from those who have a lot to lose if Musk does deliver on his plan to rid the global economy of fossil fuels.
Going private would allow Tesla to avoid numerous pressures of the public markets, such as wild stock swings, scrutiny from Wall Street analysts, as well as "attacks" from short-sellers - a group that Musk has said 'want [Tesla] to die so bad they can taste it'. It was also revealed that funding was far from secured.
These 7 tweets about taking the company private have proven to be pricey enough and Tesla and Musk combined have to pay a hefty price of $40 million to settle the case.
The settlement will stand post a court approval in which Tesla and Musk neither admit nor deny the charges levied by the SEC. In addition, Tesla agreed to appoint two more independent directors to its board, and exercise more control over Musk's statements on social media as well as via more traditional channels of corporate information. "The resolution is meant to prevent further market disruption and harm to Tesla's shareholders".
The SEC sued Musk on Thursday for misleading investors after falsely tweeting that he had secured funding to take the company private - also known in the securities biz as fraud. His tweets implied that the only remaining barrier to the privatisation would be a shareholder vote. "By paying that size fine, it bolsters investors'" claims over stock market losses, he said. Right now, Tesla stock has a Hold analyst consensus rating with only 7 recent Buy ratings. The SEC claims that Musk's actions caused "significant market disruption". "Nor did it have sufficient processes in place to that Musk's tweets were accurate or complete". That total reportedly included about 53,000 Model 3 vehicles - Tesla's flagship sedan and the key to CEO Elon Musk's efforts to achieve sustained profitability.
After filing the lawsuit, SEC officials were anticipating a drawn-out legal battle, but settlement talks started up again late Friday after Musk's attorney Steven Farina sent an email asking to reopen the discussions.