An investigation by federal authorities is underway regarding Tesla’s alleged use of company funds for a covert project aimed at constructing a home for CEO Elon Musk in Austin, Texas, as reported by the Wall Street Journal.
The U.S. Attorney’s Office for the Southern District of New York is currently gathering information to determine the extent of Tesla’s expenditure on the initiative, referred to as “Project 42,” as well as its intended purpose.
In addition, Manhattan-based prosecutors have inquired about personal benefits provided to the billionaire executive who also operates SpaceX and owns the platform formerly known as Twitter, according to the Journal.
The Securities and Exchange Commission (SEC) has also initiated a civil investigation into the clandestine project, following an internal inquiry conducted by Tesla.
Internally, Project 42 envisioned the construction of a glass-walled structure near Tesla’s Austin headquarters, which was intended to serve as a residence for Musk, as stated in the Journal.
The project raised concerns among Tesla’s legal team and board members, particularly after a significant order for specialized glass was placed.
Consequently, an investigation was launched to assess the allocation of employee time to the project, potential misuse of company resources, and Musk’s involvement, the Journal reported. The findings of this investigation remain undisclosed.
The SEC spokesperson declined to comment on the existence or absence of an ongoing investigation. The U.S. Attorney’s Office for the Southern District of New York and Tesla have not responded to requests for comment from The Hill.
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