Reports indicate that the project codenamed 'Project 42' entailed the creation of a glass structure that potentially included a residential component designed for the CEO of the car manufacturer, Elon Musk.
US prosecutors are currently investigating Tesla on suspicion of using company funds for a confidential endeavor internally referred to as a residence for Elon Musk, the CEO of the electric car manufacturer.
The US attorney's office for the southern district of New York has requested information from Tesla, including details about personal benefits provided to Musk, the extent of expenditures on the project, and its purpose, as reported by the Wall Street Journal.
According to sources knowledgeable about the matter, the Securities and Exchange Commission (SEC), the US financial regulatory body, has also initiated a civil inquiry into the project, known within the company as "Project 42."
In a July report, the Wall Street Journal depicted "Project 42" as resembling Apple's Fifth Avenue store in Manhattan. The project took on the form of a twisted hexagonal structure located on waterfront property adjacent to Tesla's Austin factory in Texas. The proposed building at Tesla's Texas headquarters was informally referred to as a dwelling for Musk.
Additional visuals of the project displayed a large glass structure that seemed to incorporate a residential aspect, the Wall Street Journal noted. Allegedly, concerns arose among employees about the utilization of a multimillion-dollar glass order, prompting Tesla's legal team and board members to review the project.
The current status of the project and the glass order remains uncertain. The investigations are in their preliminary stages and may not lead to formal charges, the Wall Street Journal stated.
Efforts to obtain comments from Tesla, Musk, the Manhattan US attorney's office, and the SEC are ongoing. The SEC has opted not to comment.
Back in March, the Wall Street Journal had reported Musk's intention to establish a "Texas utopia" near Austin, adjoining facilities for his Boring Company and SpaceX. This envisioned community would serve as a residence and workspace for his employees.
Furthermore, the Wall Street Journal revealed that federal prosecutors are scrutinizing Tesla's claims about vehicle performance, following allegations that the company exaggerated the potential driving range of its vehicles. In July, Reuters had reported instances where Tesla cars fell short of their advertised range estimates and the projections displayed by the cars' internal equipment. It was claimed that the company developed algorithms around a decade ago to generate optimistic in-dash driving range estimates and even established a "diversion team" to manage appointments related to range-related issues.
The "diversion team" was implemented as Tesla's service centers experienced a surge in appointments from owners disappointed by the discrepancy between the company's advertised estimates and the actual performance of their vehicles, according to Reuters' sources familiar with the matter.
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