Tesla, in response, has also hired two law firms, Paul, Weiss, Rifkin, Wharton & Garrison to help deal with the SEC, and Latham & Watkins to advise on privatization.

Last week, Musk shocked investors after tweeting that he could take the company private at $420 per share, the stock soared on the news before being halted by the Nasdaq.

A former SEC commissioner told FOX Business last week if Musk's funding disclosure was not accurate, which appears to be the case a week later, it would create a new round of legal issues for Musk.