Tesla Inc TSLA chief Elon Musk denied building any type of home for himself using company funds after a recent report revealed the EV company was being investigated by the Department of Justice and the Securities and Exchange Commission over a covert initiative described as a “glass house” project for the CEO.
What Happened: “I'm not building a house of any kind, let alone a glass one!,” Musk said on X, formerly Twitter.
Manhattan federal prosecutors are investigating whether Tesla misused company funds for a secretive initiative known as “Project 42,” aimed at building a glass structure resembling a house for Musk near the Austin, Texas headquarters, the Wall Street Journal reported, citing people familiar with the matter.
“This is one of the funniest things I've ever heard. Where is this house!? Metaphors don't count!” Musk wrote.
Responding to a user who said Musk now has to be the Guinness world record holder for the most number of lawsuits, Musk wrote, “This is a pretty funny one tbh. Where is it!?”
Another user noted that French publications alleged that Musk is building a house in the Italian Alps, to which Musk said: “What!? I'm not building a house anywhere.”
See Also: Everything You Need to Know About Tesla Stock
The Allegations: The probe by the U.S. Attorney’s Office and an accompanying SEC inquiry are exploring potential financial irregularities and perks provided to Musk.
Notably, these investigations are in the early stages and may not lead to formal allegations, as per the report.
Why It Matters: SEC rules mandate the disclosure of transactions over $120,000 involving related parties and benefits exceeding $10,000 for top executives.
This development unfolds against a backdrop of prior clashes between Tesla, Musk, and the SEC, including Musk’s attempts to challenge a settlement reached in 2018 over allegations of misleading investors with tweets about taking Tesla private.
The Wall Street Journal first reported about the alleged secret project in July. Musk responded to the news back then, calling it the “funniest fake news” he had heard in a while.
Related Link: Elon Musk Affirms Training Compute Will Not Be A Constraint For Tesla’s Full Self-Driving Improvements Much Longer
Photo courtesy: Thomas Hawk on Flickr
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