However, a source who is familiar with PIF's strategy said it was not now getting involved in any funding process for Tesla's take-private deal.
A veteran shareholder lawyer in San Francisco said investors may have a viable claim against Tesla.
Short-sellers aim to profit by selling borrowed shares, hoping to buy them back later at a lower price.
The Wall Street regulator is reported to have asked Tesla why plans to go private were disclosed on the social media platform rather than in an official filing.
Tesla Inc (TSLA.O) and Chief Executive Elon Musk were sued twice on Friday by investors who said they fraudulently engineered a scheme to squeeze short-sellers, including through Musk's proposal to take the electric auto company private. The main accusation against both is that they perpetrated a fraud on the shareholders of Tesla by misleading that the company is being turned into a privately held company. His personal stake in Tesla is nearly 20 per cent. Chief Executive Elon Musk's buyout tweet last week: Why did Nasdaq let trading in Tesla shares continue for more than an hour afterward? In part, due to reports that federal officials are investigating Musk's claims.
"If there is no such agreement, require a statement by 5:30 pm".
Jose Mourinho takes a swipe at United’s critics
I had my plans for many months and I find myself with the market closed in a situation I did not think I would be in. Speaking at Carrington, Mourinho said: "If they feel they can help us, 20 minutes, ten minutes half an hour..."
He's accused them of manipulating the press by planting stories that paint Tesla in a bad light. Tesla has not commented on this report.
"His whole focus on shorts is a misallocation of his time and resources", said investor Christopher Irons, founder of independent investigative research website quoththeravenresearch.com.
The lawsuit against Elon Musk Mr. Isaacs is a short-seller, and this is apparently legal on Wall Street, even though another short-seller, Carson Block of Muddy Waters Capital says, "Short-sellers are not ever going to be loved by Wall Street in the U.S., but we're pretty lucrative for banks, because of the borrow fees we pay".
Additionally, besides acquiring a stake of just below five per cent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group Corp's Vision Fund over five years.
One possibility involves a deal that would persuade most small shareholders to sell their stakes.