Musk announced on Twitter that he has obtained funding for Tesla to go private. The price was $420 per share. Stocks usually match the takeover price that is publicized by a company. Investors believe that the takeover will happen and the stock will ultimately be valued at the same price as the publicized value.

Investors were skeptical and never trusted Musk. The stock was never even close to reaching $420 per share. The stock reached a high of $387.46 per share on August 7, but has since fallen.

They were right to be skeptical: according to the SEC, Musk never had the funds. He gave up the idea of going private just three weeks after first tweeting about it.

After the closing bell on Thursday, the stock dropped to $265. This is 14% lower than Tesla’s day-end price. Tesla stock is down more than 29%, including the after-hours drop.

Tesla’s ( TSLA), stock price may come back to haunt it. Tesla is burning cash for expensive cars and plants, but the company desperately needs this money in order to repay about $1 billion of debts by February 2019. The majority of this money would be converted into stock, if Tesla maintains a price above $360. But that is unlikely.

Tesla can raise money by issuing debt, or even stock. This could deflate the stock, reducing the capital that the company can spend to invest in new infrastructure for car production.

Musk denied the claim that Tesla is facing a cash crisis. Musk says that increased Model 3 sales are going to generate enough money for Tesla to become profitable by the end of 2018.

Tesla could face other issues as a result of the SEC lawsuit.

Musk was asked to stop serving as a director or officer of any public company by the agency, along with other sanctions.

This is a major concern for Tesla. Musk has built the company from nothing into an enterprise worth billions of dollars. Musk is the chairman and CEO of Tesla.