Federal prosecutors are probing whether Tesla’s company resources were used to supply personal benefits to CEO Elon Musk as early as 2017, farther back then previously known, according to people familiar with the investigation who also said prosecutors have made allusions to the involvement of a grand jury—indicating potential criminal charges, the Wall Street Journal reported.
Elon Musk, CEO of Tesla and X, speaks to reporters as he leaves the “AI Insight Forum” at the ... [+]
Prosecutors have reportedly broadened their probe to include transactions between Tesla and other Musk-connected entities and whether any perks Musk received were properly reported according to SEC regulations.
The widened investigation comes after federal prosecutors and the SEC began probing a secret Tesla project known as “Project 42” that employees described as a glass house for Musk in the Austin, Texas, area near Tesla’s factory, the Journal reported in August.
SEC regulations require public companies to report personal benefits for its executives that exceed $10,000 in value, along with transactions exceeding $120,000 that executives have a material interest in.
Earlier this month, Musk denied that there is a “glass house . . . built, under construction or planned,” in a tweet.
Internal Tesla documents show renderings for a lakefront project near Tesla’s Texas factory that depicted a glass structure with residential features, including bedrooms, bathrooms and a kitchen, according to plans reviewed by the Journal and interviews the paper conducted with company sources who said the project was described internally as a home for Musk. The company also spent millions purchasing large-format glass panels, sparking concerns from company lawyers and board members and prompting an internal investigation into the matter and whether Musk was personally involved, the Journal reported in July. Both the outcome of the glass order and the internal investigation are unclear.
DOJ, SEC Investigate Tesla Over Secret Glass House Project (Wall Street Journal)
A Glass House for Elon Musk Sparks Internal Tesla Probe (Wall Street Journal)
Musk Lieutenant Scrutinized in Internal Tesla Purchasing Probe (Bloomberg)
Tesla Faces Federal Probe Over Elon Musk’s Secret Company-Funded Glass House, Report Says (Forbes)