Justice Department, SEC Officials Investigate Elon Musk's Tesla Over Secret 'Glass House' Project
Tech entrepreneur Elon Musk founded Tesla in 2003.
Aug. 30 2023, Published 5:10 p.m. ET
The Department of Justice and the Securities and Exchange Commission (SEC) are seeking more information about Elon Musk's company Tesla and a secret 'glass house' project, RadarOnline.com has learned.
Personal benefits paid to the tech entrepreneur were called into question with the two separate probes.
The DOJ and SEC opened two separate probes into Tesla's 'Project 42' funding and purpose.
According to a report from the Wall Street Journal, The U.S. Attorney's Office for the Southern District of New York were seeking additional information on the use of company funds, which were allegedly used to fund a secret building project for the CEO.
Manhattan prosecutors were working to determine how much Musk was paid and what exactly the funds were used for.
Tesla's electric self-driving car technology was also at the center of another DOJ probe.
Sources familiar with the probe said that prosecutors were specifically seeking more details on the purpose of the alleged project, which was described as a house for Musk — in addition to how much Tesla may have contributed to the project.
The glass house was described as a spacious home in Austin, Texas, where Tesla was headquartered, though it was still undetermined what the purpose the home would serve for the company.
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Tesla board members launched their own investigation into the company's glass house project.
Rumors surrounding the glass house project popped up in July. At the time, Tesla board members launched their own investigation on whether or not company resources were used to support the build, which was known internally as "Project 42," as well as whether or not Musk was involved in the venture.
The outcome of the board member's investigation was unknown.
Tesla employees allegedly raised concerns over millions of dollars of specialized glass ordered for 'Project 42.'
In addition to the Manhattan prosecutor's probe, the SEC opened a civil investigation that seeks similar information on the so-called "Project 42."
In addition to board members, Tesla lawyers raised concerns over the secret project after employees were said to have come forward with their own hesitations about the project, specifically the cost of its unique building materials. Employees allegedly scrutinized what Tesla was going to do with the millions of dollars worth of custom glass ordered for "Project 42."
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