Tesla under investigation for secret glass house project

According to The Wall Street Journal, at least two government organizations are investigating Tesla’s “Project 42,” a secret glass house project. The magazine claimed in July that the automaker’s board of directors launched an investigation into allegations that its chief executive, Elon Musk, was using corporate funds for the project. The US Attorney’s Office for the Southern District of New York reportedly requested information about how much Tesla spent on the project, as well as any personal benefits Musk receives. Similarly, the Securities and Exchange Commission (SEC) launched a civil investigation and is seeking the same material, according to the Journal.

Project 42 plans called for the construction of a glass structure that appeared to be a living space complete with beds, bathrooms, and a kitchen near Tesla’s headquarters in Austin, Texas. A “twisted hexagon” or a glass cube similar to the Apple store on Fifth Avenue were two proposals. According to the Journal, the board launched an investigation after employees raised concerns about specialty glass purchased for the project, which they say will cost the company millions of dollars. It is unclear if the investigation is complete and if the company’s order for this unique glass has been fulfilled.

According to the magazine, the SEC requires transactions worth more than $120,000 when an official has a financial interest in them. Any personal benefits paid to CEOs in excess of $10,000 must also be disclosed to investors. However, authorities have only just begun investigating the effort, and these investigations may not result in official charges.

In addition to the Project 42 investigations, Tesla is apparently being investigated by federal prosecutors in connection with the range of its vehicles. The company is under investigation after Reuters reported last month that its electric vehicles routinely miss range estimates and that the corporation specially created a team to cancel repair appointments related to range complaints.

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Categories: Technology
Source: vtt.edu.vn

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