Musk Isn't Throwing Stones, But Tesla Under DOJ And SEC Investigation Over 'Glass House' Project

Elon Musk’s Tesla Inc (NASDAQ:TSLA) is once again under the scrutiny of federal agencies — the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) — over a secretive initiative known as “Project 42.”

The investigations focus on the potential misuse of company funds for what has been internally described as a glass house for Musk, in the Austin, Texas area, The Wall Street Journal reported Wednesday.

This follows a development from July when Benzinga reported that Tesla board members were investigating whether company resources were inappropriately allocated toward the project, which allegedly included plans for a glass structure with bedrooms, bathrooms, and a kitchen.

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The status of the project and whether the specialized glass, costing millions of dollars, was ever delivered is unknown.

Manhattan federal prosecutors are keen on learning how much Tesla spent on the project and what personal benefits Musk may have derived, according to the Journal. The SEC also initiated a civil investigation into “Project 42,” specifically seeking details similar to those pursued by the DOJ.

Given Musk's previous assertion that he lives in a $50,000 tiny home in Texas after selling several of his properties, the new investigations raise some questions.

The DOJ and SEC investigations are in their preliminary stages, and no formal allegations have been sent.

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