Tesla (TSLA) -) and its CEO Elon Musk are reportedly in the crosshairs of two separate federal investigations concerning a potential misuse of company funds in the proposed construction of a large glass structure in Austin, Texas, near the company's headquarters.
The Securities and Exchange Commission, in addition to Manhattan federal prosecutors, are separately investigating the use of company funds to build what has been described as a glass house for Musk, according to the Wall Street Journal, which cited people familiar with the situation.
News of these federal investigations comes just a month or so after the Journal reported that members of Tesla's own board were investigating a potential misuse of company resources in funding the creation of this glass structure, known as "Project 42."
DON'T MISS: Tesla Faces a Troubling New Investigation Into Several of Its Most Popular Models
TheStreet was unable to confirm the investigation with the U.S. Attorney's Office for the Southern District of New York. An SEC spokesperson said that "the SEC does not comment on the existence or nonexistence of a possible investigation."
Musk, however, has been adamant that no such house -- glass, or otherwise -- exists.
"I’m not building a house of any kind, let alone a glass one," Musk posted on X, the social media platform he purchased last year. "I’m not building a house anywhere."
More Tesla:
- Tesla Faces Alarming New Investigation About the Safety of Its Vehicles
- Elon Musk On Tesla's Stock "10X-ing" as Cathie Wood Has Predicted
- Tesla's EV Range Is Far From Accurate (And That's on Purpose)
The SDNY, according to the Journal, has been seeking information about how much Tesla paid for Project 42, what the project was for and what benefits have been paid to Musk. The SEC is reportedly seeking similar information from the EV company.
Tesla did not immediately respond to a request for comment.
Federal investigations are nothing new for the company. Tesla is currently facing a series of investigations from the California Attorney General, the National Highway Traffic Safety Administration, the Department of Justice and the SEC over self-driving safety concerns.
Musk has also battled with the SEC in the past. The billionaire and his company were forced to pay separate $20 million fines after Musk tweeted in 2018 that he had "funding secured" to take Tesla private, causing a reaction in the company's stock.
Forget Tesla – We’re all-in on this EV stock
If you work for Tesla, please send any tips or information to ian.krietzberg@thearenagroup.net.
