5-9-2023 (AUSTIN) A recent report has raised suspicions that Elon Musk, the enigmatic entrepreneur and owner of Tesla, may have used company funds to plan a massive glass house in Austin, Texas.
According to the Wall Street Journal, both the US Justice Department and the Securities and Exchange Commission (SEC) have initiated investigations into Tesla, focusing on the electric car manufacturer and its high-profile owner.
Sources have revealed that federal prosecutors in Manhattan are seeking information regarding the project in question. This includes details on how much Tesla allocated for the endeavor and its true purpose. Additionally, authorities are keen to uncover any other benefits that Elon Musk may have received. Publicly traded companies like Tesla are obliged to disclose any benefits provided to senior executives exceeding a value of $10,000.
The clandestine initiative, referred to only as “Project 42,” was subject to an internal inquiry by Tesla earlier this year. Allegedly, this confidential project was conceived as an all-glass residence for Elon Musk in close proximity to Tesla’s corporate headquarters in Austin.
Confusion among Tesla employees arose as they questioned why the company was investing millions of dollars in specialized glass. Consequently, Tesla lawyers and board members conducted an investigation into the matter. The outcome of this investigation, including whether Tesla ever received the glass and what it was intended for, remains unclear.
Elon Musk, aged 52, and Tesla have been under regulatory scrutiny for a considerable duration. The eccentric billionaire has openly clashed with the SEC, accusing the agency of unfairly targeting him. In 2018, Musk reached a $20 million settlement with federal authorities after falsely claiming he had secured funding to take Tesla private, which had caused a surge in the company’s stock price. Despite later expressing dissatisfaction with the settlement terms, a judge rejected Musk’s request to nullify the agreement.
The SEC has recently pursued several cases involving CEOs who received unreported benefits, as detailed by the Journal. Notably, one such case involved the global Hilton hotel chain.
