Lawyer: We're 'finalizing' a libel lawsuit against Elon Musk over 'pedo' tweet

Tesla may need to raise $2B to meet debt obligations

The tweet was in response to the user after he said it would have been "wonderful" if the SpaceX founder and Tesla CEO applied his "dedication to facts and truth" when he called British diver Vern Unsworth - who helped rescue a Thailand soccer team trapped in a cave - a "pedo".

The letter, dated August 6, said the possible lawsuit would cover "false and defamatory statements" made by Musk against Unsworth. He had criticised Musk's proposal for the use of a mini-submarine in the operation, calling it a "PR stunt" and said that the prototype had "absolutely no chance of working".

On Tuesday, the Tesla CEO tweeted in reply to former TechCrunch writer Drew Olanoff that it was "strange" that the diver, Vernon Unsworth, had not sued him, considering he was "offered free legal services".

"I have been retained by Vernon Unsworth to represent his interests in connection with the publication on your Twitter account of false and defamatory statements conveying that Mr. Unsworth is a pedophile". He wrote: "Did you investigate at all?"

It's unclear if Musk read or reviewed the notice. It appeared that the controversy might have ended with Musk apologizing for his outburst and deleting the tweets shortly after, but on Tuesday, the whole issue was reignited again.

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Outraged Musk tweeted: "We will make one of the mini-sub/pod going all the way to Cave 5 no problemo. sorry pedo guy, you really did ask for it". The embattled tech entrepreneur volunteered to build a "kid-sized submarine" to get the children out, but the Thai authorities rejected his assistance, prompting Musk to say that the provincial governor in charge of the rescue was "not the subject matter expert".

"And Musk, I hear you", she concluded.

A spokesman for Tesla declined to comment on short-sellers, who are often dubbed "haters" by Musk's supporters on Twitter. "According to a subsequent Twitter post, you did so out of anger".

Loss-making Tesla told investors earlier this month that it expects to show a profit in the third and fourth quarters and has reiterated that it does not plan to seek new capital from shareholders, something Wall Street analysts have questioned. Still, his decision to keep Tesla public may mean the agency keeps a close eye on his public statements for the foreseeable future.

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