Elon Musk sparked a federal investigation into his electric vehicle manufacturing company, Tesla, over the alleged use of company funds for a secret house project.
Following the report, neither Musk nor a spokesman for the US Attorney's office in Manhattan responded to requests for comment regarding the situation. While there was no information regarding the project's cost, the report noted that the house is located near Austin, Texas.
Elon Musk's Secret House Project
In July, the Wall Street Journal reported that Tesla board members had investigated whether or not company resources were misused on the alleged secret house project. The Securities and Exchange Commission (SEC) also opened a civil probe into the matter.
A spokesperson for the SEC said that the agency does not comment on the existence or non-existence of a possible investigation related to the matter. The report noted that the investigations are still in their early stages and may not even lead to any charges against anyone, per the New York Post.
The report added that prosecutors also looked into complaints about Tesla electric cars' lower-than-expected driving range. This comes after reports in July that the company's vehicles often fail to achieve their advertised range estimates and projections made by the cars' equipment.
People familiar with the investigations said the project is known internally as Project 42. On top of trying to determine how much was used for the project, the US Attorney's Office is also looking into what personal benefits were paid to the tech billionaire.
Previous reports suggest that the structure was described as a house for Musk that allegedly needed specialized glass that cost millions of dollars. The situation comes as the SEC's regulations require public companies to disclose perks paid to top executives and any transactions that go beyond $120,000 if a company representative has either a direct or indirect material interest in the transaction.
Using Tesla's Company Funds
The glass reportedly used on the Secret House project included large panels commonly used on building facades. According to Forbes, the investigation was triggered internally after an order for the glass was made.
If such an effort to build a secret glass house for Musk is confirmed, it would come in contrast to the tech billionaire's supposed preference for a low-maintenance lifestyle. Two years ago, the Tesla CEO said his primary residence was a $50,000 South Texas home rented from his SpaceX company.
He added that the only house he owned at the time was an events house in the Bay Area. However, his remark was contradicted after he was found to have lived in a multi-million square-foot mansion that is owned by Ken Howerry, the co-founder of PayPay and Musk's friend.
For years, the 52-year-old tech billionaire has been in regulators' crosshairs as he has previously openly feuded with the SEC and accused the agency of unfairly targeting him. Musk reached a $20 million settlement with the feds in 2018 after he lied about having enough funds to take Tesla private, causing the company's stock to skyrocket, according to the New York Daily News.
Related Article: Elon Musk's X Can Now Process Crypto Trades, Payments
