US prosecutors are conducting a criminal investigation into Tesla’s use of company funds and are focusing on potential perks offered to Elon Musk. The investigation by the US Attorney’s Office for the Southern District of New York aims to determine if Tesla properly disclosed any benefits received by Musk in his role as CEO of the electric carmaker.
One of the perks under scrutiny is a proposed glass house known as “Project 42,” which was planned near Tesla’s Austin-based headquarters. Although Musk denies any plans for a glass house, there is evidence to suggest that he had considered building a home on a horse farm near a Tesla factory in Austin.
The investigation is also examining the company’s expenditure on “Project 42” and whether the specialized glass panels were ever delivered to Tesla. Both civil and criminal investigations are underway, as federal regulations require the disclosure of personal benefits exceeding $10,000 for company executives.
In a separate development, Musk’s company SpaceX is facing legal action from the US government for its hiring policies. The Department of Justice has accused SpaceX of discriminating against refugees and asylum seekers by refusing to hire individuals who are not US citizens or green card holders. SpaceX argues that while it has employed non-US citizens, some projects have national security implications and employing foreign workers could result in significant fines.
Sources:
– Wall Street Journal