The SEC's formal investigation into Tesla looks to be ramping up because as FOX Business News reporter Charlie Gasparino reported on Wednesday, Tesla's board and Elon Musk have both retained counsel with substantial pedigree to defend themselves.

In an on-air segment between Gasparino and Neil Cavuto on Wednesday afternoon, Gasparino reiterated that the SEC investigation into the company was "a very serious probe, based on a lot of reporting" and he seemed to cast aside the potential defense of ignorance or acting without malice when Cavuto alluded to it. Gasparino stated that the SEC is "focusing heavily" on statements that Elon Musk made and whether they were intended to move the stock.

Gasparino states at the end of his segment that the caliber of attorneys retained by Musk and the company indicates to him that they are "lawyering up in a major way, ready to go to battle".

The full segment can be viewed below. 

.@CGasparino with #BreakingNews on Tesla $TSLA and the SEC. He says that the automaker is "lawyering up in a major way, ready to go to battle" pic.twitter.com/eoYUwdfp05

— Neil Cavuto (@TeamCavuto) September 5, 2018

This segment came as a follow-up to earlier scoops by Gasparino. 

SCOOP: @SEC_Enforcement investigating company/@elonmusk statements abt co's progress/privatization had basis in fact; examining corporate documents with focus on Model 3 production targets; Musk’s testimony will likely be taken near end of probe — sources more now @FoxBusiness

— Charles Gasparino (@CGasparino) September 5, 2018

SCOOP: @Tesla ’s board retains veteran litigator Daniel Kramer of Paul Weiss for SEC probe; Kramer represented Steve Cohen/SAC Capital in insider trading case and @21CF in investigations of former network chief Roger Ailes and host Bill O’Reilly more NOW @FoxBusiness

— Charles Gasparino (@CGasparino) September 5, 2018

SCOOP: As @SEC_Enforcement ramps up its investigation into @Tesla and @elonmusk, the embattled CEO retains 2 white-collar legal heavyweights for his defense team--Former SEC Commish Roel Campos, and Steve Farina of William & Connolly. more now @FoxBusiness

— Charles Gasparino (@CGasparino) September 5, 2018

Gasparino also went on to add that the SEC was examining corporate documents with a focus on the company’s Model 3 production targets. Recall, we previously wrote an article detailing a lawsuit that alleged that Elon Musk knew that the company would not be able to meet some Model 3 production targets in 2017.

Gasparino also said that Elon Musk will likely be expected to give testimony toward the end of the SEC probe.

In addition to that, Gasparino also tweeted out during the afternoon that Tesla's Board of Directors had retained veteran litigator Daniel Kramer. Kramer had not only represented Steve Cohen and SAC Capital during their infamous insider trading case, but also 21st Century Fox during investigations of former network chief Roger Ailes and former talk show host Bill O'Reilly.

Kramer's online bio notes that he "routinely handles complex litigations for some of the world’s largest companies, represents boards of directors on corporate governance issues and leads special committees in internal investigations."

His recent cases could be considered a who's who of corporate wrongdoing:

"ExxonMobil in litigation regarding its reporting of reserves; 21st Century Fox in the Roger Ailes investigation; ADT in litigation challenging its decision to increase debt and buy back stock; Steven Cohen and SAC Capital in insider trading-related criminal, civil and regulatory proceedings and litigations; Time Warner Cable in its merger with Comcast; UBS in the Detroit bankruptcy; Merck in litigations and investigations regarding its drug products Vioxx and Vytorin; Bank of America in the Merrill Lynch merger; AIG in disputes with its former CEO Hank Greenberg; Hollinger in disputes with its former CEO Conrad Black; and board committees of Vanguard, Mutual of Omaha and Fannie Mae."

Gasparino also reported on Twitter that Elon Musk had retained two white collar "legal heavyweights" for his personal defense team: former assistant SEC Commissioner Roel Campos and Steve Farina of Williams and Conley.

Campos' resume states:

Roel’s practice consists of advising senior management and boards in their most sensitive and complex issues. His practice often involves conducting internal investigations and defending matters involving financial regulators, such as the SEC, DOJ, CFTC, and FINRA. He also advises boards on items such as cybersecurity, governance, cryptocurrency and proposed rulemakings by financial regulators.

Beginning in 2002, Roel was appointed twice by President George W. Bush and confirmed by the US Senate as a Commissioner of the SEC, serving until 2007. During his tenure, Roel presided over hundreds of complex enforcement cases and rulemakings, involving the full range of federal securities laws.

Prior to being appointed to the SEC, Roel raised venture capital with partners, was a senior executive and operated a radio broadcasting company.

Farina's bio is equally as impressive, listing him as someone with "extensive experience in the areas of complex civil litigation, class actions, regulatory investigations, professional liability defense, and financial services litigation".

It continues:

Mr. Farina has defended issuers, underwriters, accounting firms, and corporate officers and directors in securities litigation brought under the 1933 Securities Act and the 1934 Securities Exchange Act.He also has represented issuers, accounting firms, corporate officers and directors, and other individuals (including lawyers and accountants) in investigations and enforcement actions by the Securities and Exchange Commission, Commodity Futures Trading Commission, and Public Company Accounting Oversight Board.

The details offered up by Gasparino indicate that the SEC investigation may have a broader scope than many had expected while confirming that it is apparently proceeding with enough veracity for Tesla's Board of Directors and its CEO to retain seriously high powered counsel.

As much of this case has already played out in the public eye, where many have already made up their mind about the outcome, the onus is on the SEC to now prove to the public how serious they are about governing our capital markets.