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What is Project 42, Elon Musk’s eccentric Texas mansion that Tesla is being investigated for?

What is Project 42, Elon Musk’s eccentric Texas mansion that Tesla is being investigated for?

Local media reported this week that the US Department of Justice has opened an investigation into the use of Tesla funds to fund a project that could be the residence of its CEO, Elon Musk.

The US Securities and Exchange Commission (SEC) will also investigate the case, though reports suggest that Both investigations are in the preliminary stage. It can end without charges.

According to an article from The Wall Street Journal Plans for Project 42 were published in July Similar to the one at the Apple Store on Fifth Avenue in Manhattan, New Yorkand took the shape of a twisted hexagon on a waterfront lot with Tesla’s factory in Austin behind it.

The newspaper described Project 42 as a “stunning building with glass walls,” adding that the plans show different layouts and features, but include residential elements.

The US Attorney’s Office for the Southern District of New York has issued subpoenas to several current and former Tesla employees. Bloomberg reported on Wednesday that some have been asked to appear in court in September.

Why did Project 42 trigger the Tesla investigation?

The SEC rules state this Public companies must report transactions over $120,000 in value In which any of its executive directors may have a material interest.

If a public company is found to have used company funds for an executive’s personal use, this could result in an IRS investigation as well as shareholder lawsuits.

In the case of Project 42 The Wall Street Journal He says the issue began to be investigated internally a few months ago, when several employees questioned the use of a special type of glass that the company had bought for several million dollars.

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Tesla’s board of directors launched an investigation in July into whether company funds were diverted to Project 42, and even whether Musk himself was involved in its planning, but Its findings have not been published.

What is known about Project 42?

The status of Project 42 is not known, nor is the fate of Glass, which the investigation began, but according to T I have the Wall Street JournalMusk planned to build a “Texas utopia” outside of Austin, in an area close to the headquarters of his tunneling company and rocket company SpaceX, with the goal of creating a place where his employees could live and work.

And in December last year, Musk made the decision to install the beds at X Corporation’s headquartersformerly Twitter, which the company acquired in 2022. The controversial initiative opened an investigation by the San Francisco Department of Building Inspection.

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