It seems that Tesla is undergoing through federal investigation by the DOJ. This inquiry is allegedly using company resources for the construction of Tesla’s CEO mansion, Elon Musk.
It is to be noted that this came to notice last year. Thereby, it was reported that Tesla was going through an internal investigation about misuse of the company resources. To be more specific, according to Bloomberg, Omead Afshar, director of Elon Musk’s office, was about to be fired. This is on the matter over an order for a “special glass” for a “secret project.”
While this special project was rumored to be a house for the CEO. And since the public company can’t use its resources or assets for a private project.
Freshly, as reported by the Wall Street Journal, they released another report. In this report, they mentioned that it was known as ‘Project 42’ at Tesla. While it intends to build a “mansion” for Musk in Austin respectively.
Now getting the idea of it, several publications are reporting that the new WSJ report has emerged in several investigations. This also comprises Federal investigators from New York and the SEC. Another aspect is that, if it is true and if Elon Musk intended to pay for the company resources, Tesla needed to disclose the transactions at par.
According to SEC regulations, publicly traded companies need to disclose transactions above $120,000 with related parties such as directors and executives. On the other hand, the “special glass” was said to be worth a lot more than $120,000.
