Federal prosecutors are examining Tesla’s allocation of funds towards a secret project that may be a house for CEO Elon Musk, individuals familiar with the situation told The Wall Street Journal.
The U.S. Attorney’s Office in the Southern District of New York (SDNY) has requested details regarding personal benefits paid to Musk, how much Tesla paid for the project and the purpose behind it, according to the WSJ. The project, which is internally called “Project 42” involves the construction of an expansive glass building in the vicinity of Austin, Texas.
Tesla’s board members had looked into the company’s potential inappropriate spending on the covert project and the extent of Musk’s participation in it, the WSJ reported in July. Additionally, the Securities and Exchange Commission (SEC) has launched a similar civil probe into Project 42, one of the individuals told the WSJ. (RELATED: Elizabeth Warren Urges Biden Regulators To Investigate Elon Musk’s Tesla Over Twitter Takeover)
Staff worked on Project 42 in 2022, which was depicted in pictures as both a twisted hexagon and a sizable glass enclosure that seemed to contain a living space, according to the WSJ.
The DOJ and Tesla did not immediately respond to the Daily Caller News Foundation’s request for comment.
The SEC and SDNY declined to comment.
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