The U.S. Attorney’s Office for the Southern District of New York, as well as the Securities and Exchange Commission have recently begun investigations into Tesla’s Project 42, which is described as a use of company funds on a glass house for Elon Musk, according to those familiar with the case.
Tesla employees had begun to originally work on the project as of last year, where details of the project showed that it would be built near Tesla’s headquarters located in Austin, Texas. The project appeared to be a “dramatic, glass-walled building”, with concept plans showing many different designs and features. Some images of plans showed it to be a glass box with a residential area, while another image showed a concept for a hexagon-like shape.
Tesla's Gigafactory in Austin, Texas. Photo Courtesy: Wall Street Journal
Project 42 then came under scrutiny when Tesla board members and lawyers began to criticize the millions of dollars being used to order “specialized glass”. It is still unclear whether or not Tesla had the glass delivered.
It is unknown whether or not Musk is involved in Project 42. According to the Wall Street Journal however, SEC rules and regulations require all public companies to disclose any transactions that go over $120,000, in which a related party, like a CEO, has a material interest.
Investigations are still in the early stages, and in a statement provided to Business Insider by the SEC, the SEC says it “…does not comment on the existence or nonexistence of a possible investigation.” The DOJ declined to comment for both the Wall Street Journal and Business Insider. On X, formerly known as Twitter, Musk tweeted out “I’m not building a house of any kind, let alone a glass one!”
Elon Musk. Photo Courtesy: NPR
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