In a recent development, sources from The Wall Street Journal have revealed that electric vehicle manufacturer Tesla is facing a potential investigation into CEO Elon Musk‘s alleged improprieties. Concerns were raised by the company’s board regarding Musk’s suspected use of company funds in the construction of a personal residence near the Austin-area Gigafactory, known internally as “Project 42.” The initiative is said to involve significant purchases of specialized glass, which caught the attention of employees last year. Additionally, several limited liability firms associated with Musk and Tesla executives have acquired substantial amounts of land in the vicinity.

All purchases larger than $120,000 have to be approved by a board committee

According to insiders, designs for the house included a distinctive “twisted hexagon” or a glass cube resembling Apple‘s iconic 5th Avenue store. The plans reportedly encompassed personal spaces such as bedrooms, bathrooms, and a kitchen, indicating a private residence rather than a Tesla-affiliated project.

Elon Musk

As of now, the status and outcome of the investigation remain undisclosed. Notably, Tesla disbanded its public relations department several years ago, and Elon Musk has refrained from commenting on the report. The board’s primary objective is believed to be determining Musk’s involvement and ascertaining whether employee working hours were utilized for the construction of his personal residence. Although Bloomberg had previously reported on the glass order, the existence of the board investigation and the nature of “Project 42” were unknown.

While it is not uncommon for executives to receive perks such as private jets, Tesla maintains a relatively stringent policy in this regard. The company mandates that any expense exceeding $120,000, involving a related party like the CEO, must undergo audit scrutiny by a board committee.

This is not the first instance of a high-profile tech executive facing scrutiny over personal expenses. Meta, previously Facebook, recently investigated departing COO Sheryl Sandberg amid allegations of utilizing company resources for personal purposes such as wedding planning and suppressing negative media coverage involving her ex-partner, Bobby Kotick. However, Musk’s case stands out due to his prominent position as a major CEO.

Elon Musk is also currently entangled in an ongoing battle with the Securities and Exchange Commission relating to his use of social media to disseminate financial information. As the investigation unfolds, the implications for Tesla and Elon Musk could potentially have far-reaching consequences, warranting careful observation by industry analysts and stakeholders alike.

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