At least two government agencies are looking into Tesla's secret glass house project dubbed 'Project 42,' according to The Wall Street Journal..
At least two government agencies are looking into Tesla's secret glass house project dubbed"Project 42," according to. Back in July, the publication reported that the automaker's board launched an investigation over concerns that its CEO, Elon Musk, was using company funds for the project. Now, the US Attorney's Office for the Southern District of New York has reportedly
on how much Tesla spent on the project and on personal benefits Musk enjoys. Likewise, the Securities and Exchange Commission has also opened a civil probe, theThe plans for Project 42 involved building a glass structure that appeared to be a living space with bedrooms, bathrooms and a kitchen near Tesla's facilities in Austin, Texas. A couple of concepts envisioned it as a"twisted hexagon" or a glass cube similar to Apple's 5th Avenue store.
As the publication notes, SEC requires transactions over $120,000 when an executive has a material interest in them. Any personal benefits paid to executives that amount to over $10,000 must also be disclosed to investors. Authorities have only just started looking into the initiative, however, and these probes might not lead to any formal charges.
In addition to investigations regarding Project 42, Tesla is also reportedly facing inquiries from federal prosecutors over the driving range of its vehicles. The company is being questioned afterreported last month that its EVs frequently don't meet their range estimates and that the company set up a team specifically to cancel service appointments related to driving range complaints.
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Tesla’s use of company funds is now being investigated by the US Southern District of New York.Apparently there was a “Project 42” — for Douglas Adams fans, this number is significant — at Tesla, “which called for a spacious glass structure to be built in the Austin, Texas, area,” according to The Wall Street Journal. The project was “described internally as a house for Chief Executive Elon Musk.” Tesla had internally investigated whether there was a misuse of company resources on the project. It’s unclear what the outcome of the Tesla investigation was, what the status of the project is, whether glass was ever delivered for it, and whether the investigations from the feds will result in charges.
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| DOJ, SEC Investigate Tesla Over Secret Glass House ProjectFederal prosecutors are seeking information about benefits paid to Elon Musk.
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Tesla faces federal probes over secret Musk house project -WSJ By ReutersTesla faces federal probes over secret Musk house project -WSJ
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Elon Musk’s ‘secret house’ project spurs fed probe of TeslaTesla board members had investigated whether company resources were misused on the effort, the Wall Street Journal reported.
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Tesla is reportedly under investigation by the DOJ and SEC over its mysterious 'Project 42'The project was internally believed to involve building a glass house for Elon Musk, the Journal previously reported.
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