Manhattan federal prosecutors and the Securities and Exchange Commission are separately investigating the use of Tesla funds to bankroll a secret project that is described internally as a glass house for CEO Elon Musk, according to a report from the Wall Street Journal that cites people familiar with the matter.
WSJ reported in July that Tesla board members were investigating potential misuse of company resources on the project, known as “Project 42,” and whether Musk was personally involved. According to the newspaper, Project 42 involves a large glass structure to be built in Austin, Texas.
The U.S. Attorney’s Office for the Souther District of New York has reportedly sought information about what benefits have been paid to Musk, how much Tesla spent on the project, and what the project was for, WSJ’s sources said. The SEC, which sources say is seeking similar information, has opened a civil investigation into Project 42.
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