Federal Investigation Delves into Elon Musk’s Perks and Transactions at Tesla
The U.S. Attorney’s Office for the Southern District of New York is broadening its criminal investigation into Tesla, scrutinizing the perks and benefits that CEO Elon Musk may have received since 2017. The probe, which also involves a grand jury, is examining a secret project known internally as “Project 42,” aimed at building a house for Musk, among other transactions between Tesla and entities linked to Musk.
|Facts of the News|
|The investigation has been extended to cover perks Musk might have received since 2017|
|“Project 42” involved plans for a glass house near Tesla’s Austin factory|
|The SEC has initiated a separate civil investigation into the project|
The investigation is not just confined to “Project 42,” which envisaged an expansive glass building near Tesla’s Austin factory and headquarters. It also covers other transactions between Tesla and entities related to Musk. The Securities and Exchange Commission (SEC) has opened a separate civil investigation into the project.
Prosecutors are keen to understand if Tesla disclosed the perks Musk might have received properly. While Musk has often decided what information to share with shareholders, it remains unclear if he did so in this case. Tesla maintains that it generally does not offer perks or personal benefits to its top executives.
Further, the Manhattan-based federal prosecutors are seeking details about a different matter concerning the driving range of Tesla’s electric vehicles. Last year, investigations were also conducted into whether Tesla misled consumers and investors about the performance of its advanced driver-assistance system, Autopilot, although no enforcement action has been announced yet.
|Project 42 Defined|
|Project 42 is a secretive initiative within Tesla, which involved plans to construct a glass house for Elon Musk near the company’s Austin-area factory and headquarters. The project raised concerns among employees and board members regarding the use of large-format glass panels ordered by the company. Learn more about the Tesla on Wikipedia.|
What is “Project 42” and why is it under investigation?
“Project 42” is a secretive initiative within Tesla to build a glass house for Elon Musk near the company’s Austin factory. The project is under federal scrutiny to determine whether Tesla properly disclosed the perks and benefits Musk received, including the transactions related to this project.
What role does the grand jury play in this investigation?
The involvement of a grand jury indicates that the prosecutors are considering potential criminal charges. They are scrutinizing a broader spectrum of actions involving Musk and Tesla, including transactions between Tesla and other entities connected to Musk.
How has Elon Musk responded to the allegations regarding “Project 42”?
On the social media platform X, formerly known as Twitter, Musk denied the existence of a glass house, stating it is neither “built, under construction, or planned.” However, he did not comment on past works or plans, and neither he nor his representatives have responded to requests for comments on the matter.
Source: Wall Street Journal