Tesla is reportedly under investigation by the DOJ and SEC over it's mysterious 'Project 42'
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- Tesla is facing a federal probe over its mysterious "Project 42," The Wall Street Journal reported.
- The SEC is also investigating whether the project involved using company funds for CEO Elon Musk's personal benefit, the Journal said.
- The project is internally believed to involve building a glass house for Musk, the Journal previously reported.
Tesla is facing scrutiny over its mysterious "Project 42" that was believed internally to involve building a glass house for Elon Musk, according to a recent report from The Wall Street Journal.
The publication said, citing people familiar with the issue, that federal prosecutors are investigating whether Tesla used its own funds for Musk's personal use, and is looking into how much the company has spent on the initiative, as well as its purpose. The Securities and Exchange Commission has also launched a probe into the issue, the Journal said. Though, both investigations are in their "early stages," according to the Journal.
In a statement to Insider, the SEC said it "does not comment on the existence or nonexistence of a possible investigation." The DOJ did not immediately respond to a request for comment.
A spokesperson for Tesla did not respond to a request for comment ahead of publication. Musk also did not respond to a request for comment from Insider.
In July, the Journal reported that the project involved plans for a glass building that would be built near Tesla's gigafactory in Austin, Texas and was internally understood to be a house for the Tesla CEO. The project appeared to be for a "dramatic glass-walled building" and concept plans showed differing designs and features, but included residential elements like bedrooms.
The project drew scrutiny last year within the company after an order for glass made as part of the building-planning efforts. At the time, the internal inquiry into the order had targeted Omead Afshar, an executive leading Tesla's Texas factory, Bloomberg reported at the time.
Tesla's board had also inquired into any involvement by Musk in the project, and the amount of time any employees had spent on it, according to the Journal's July report.
It can be illegal to use company funds for personal expenses — especially when dealing with a publicly traded company. If a public company were found to have used company funds for an executive's personal use it could lead to an IRS investigation and lawsuits from shareholders.
It's not clear if the building project is still in the works, or whether the glass order was ever delivered, the Journal reported on Wednesday.