In response to the report that the US Department of Justice and the Securities Regulatory Commission investigated Tesla’s secret glass house project, Tesla CEO Elon Musk posted on the social media platform X (formerly known as Twitter) on August 31. “I’m not building a house anywhere,” the response read. “That’s the funniest thing I’ve ever heard. Where is the house?”
Earlier, The Wall Street Journal reported that at least two U.S. government agencies were investigating Tesla’s secret glass house project, code-named “Project 42.” The project involved the construction of a glass-structured living space near Austin, Texas. The project, led by Tesla Chief Executive Elon Musk, has raised concerns among the company’s board and employees that Elon Musk may be misusing company funds.
According to reports, the U.S. Attorney’s Office for the Southern District of New York has asked Tesla to provide relevant information about the project, including personal benefits paid to Elon Musk, Tesla’s spending on the project, and the purpose of the project. Likewise, the U.S. Securities and Exchange Commission (SEC) has opened a civil investigation and is seeking the same information. According to SEC regulations, if an executive has a significant interest in a transaction and the amount exceeds US$120,000, it must be disclosed to investors. Additionally, any personal benefit that exceeds $10,000 in payments to executives must also be disclosed.
