Tesla is facing a federal investigation into the secret greenhouse funded by Elon Musk, the report says

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The Securities and Exchange Commission and federal prosecutors are investigating Tesla for allegedly using company funds to build a secret glass house for billionaire CEO Elon Musk in Texas, according to the British newspaper “Daily Mail”. Wall Street Journal, which reported in July that the multi-million dollar structure was the subject of an internal company investigation.

key facts

The structure, known internally as Project 42, is being investigated by the U.S. Attorney’s Office for the Southern District of New York, which is seeking information about how much was spent on the project and personal benefits paid to Musk, people familiar with the matter said. the magazine.

the magazine It also reported that the SEC has opened a civil investigation and is seeking similar information, though the news outlet noted that both investigations are in the early stages and that Tesla may not face formal charges or allegations.

Previous reports by magazine He said the structure was described as Elon’s home, a home requiring multimillion-dollar specialized glass, prompting an internal investigation from Tesla board members who investigated possible misuse of funds and whether Musk was involved.

SEC regulations Requiring public companies to disclose perks paid to senior executives, as well as any transactions exceeding $120,000 if a company representative has a “direct or indirect material interest” in the deal.

A Securities and Exchange Commission spokesman said Forbes The agency “does not comment on the presence or absence of a potential investigation,” while representatives for the Justice Department, Tesla and Musk did not immediately respond to requests for comment.

What we do not know

The results of Tesla’s internal investigation reported in July “cannot be recognized” by the investigation committee magazine. It is also unclear whether the glass needed for the house was delivered to Tesla.

main background

The glass used in the project reportedly included large panels typically used on building facades. An internal investigation was opened after the glassing was ordered, according to the official magazine, Which stated that the investigation also investigated the amount of employee time that was used on the secret project. The glass order was first reported by bloomberg Last year, when people familiar with the matter said it was reported to internal audit groups. If Musk is confirmed to be building a glass house, it would clash with the tech billionaire’s supposed preference for a low-maintenance lifestyle. musk He said two years ago His primary residence was a $50,000 South Texas house rented from his company Spacex, noting that the only house he owned at the time was “an event house in the Bay Area.” Results from magazine Musk’s claims contradict After it was reported that he lives in a multi-million square foot mansion owned by Ken Howery, co-founder of PayPay and friend of Musk.

the shadow

Musk has split his time between Tesla, SpaceX and social media platform X (formerly known as Twitter) over the past year, and has faced criticism for his dealings with all three companies. Shortly after purchasing Twitter, it removed the site’s content moderation policies and laid off thousands of employees, some of whom claimed they were entitled to severance pay. Meanwhile, some Tesla investors did just that argue Musk’s other projects are distracting him from his work at the electric car giant, and investors sued Musk earlier this year over a 2018 tweet that he planned to take Tesla private (the billionaire was found not liable in trial).

Forbes rating

We estimate that Musk’s net worth is $257.3 billion, making him the richest person in the world.

Further reading

Elon Musk’s Glass House Teases Tesla’s Indoor Probe (Wall Street Journal)

The Department of Justice and the Securities and Exchange Commission are investigating Tesla over the secret greenhouse project (Wall Street Journal)

Report says SEC is investigating Tesla over Autopilot safety claims (Forbes)

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