Billionaire and Tesla Inc TSLA CEO Elon Musk faces an investigation from the Justice Department over a secretive project that included rumors of a glass house being built.
Here’s the latest in the ongoing case.
What Happened: The wealth of Musk has increased substantially in recent years, on the heels of the success of Tesla and its soaring valuation since going public in 2010.
Federal prosecutors are looking into personal benefits Musk may have received while leading Tesla, according to a report from the Wall Street Journal (WSJ).
The updated information includes prosecutors looking back at benefits received by Musk since 2017.
The update comes months after the Justice Department and Securities and Exchange Commission were investigating the potential use of company funds to build a house made with glass for Musk, according to the WSJ.
Prosecutors are working to gather information on transactions between the electric vehicle company and entities owned or connected to Musk.
Known as Project 42, reported plans called for a glass building to be built near the Tesla gigafactory and headquarters in Austin, Texas.
Musk has denied that there was a glass house ever being planned or built.
The newly released biography of Musk written by Walter Isaacson mentioned the billionaire meeting with an architect to build a house near the gigafactory in Texas, mentioning a design that could look like a shard of glass coming up from a lake.
Related Link: Elon Musk Shares Reasons For Not Helping Ukraine In Surprise Attack
Why It’s Important: The investigation will look into whether Tesla disclosed benefits that Musk received properly.
Regulations from the SEC require companies that are public to properly disclose benefits and perks that executives receive if it is above a value of $10,000.
Musk and Tesla are no strangers to inquiries from government agencies and investigators.
The SEC previously investigated Musk over a tweet he made about having funding secured to take Tesla private. The SEC has also investigated Tesla over claims the company made about its driver-assistance system in vehicles.
The Justice Department is also looking into SpaceX, a space company Musk is the CEO. The lawsuit centers on potential discrimination in SpaceX’s hiring process.
A lawsuit from the Justice Department said SpaceX “routinely discouraged asylees and refugees from applying and refused to hire or consider them, because of their citizenship status.”
The Immigration and Nationality Act makes this practice illegal.
Back pay for applicants who were turned down and civil penalties could be awarded in the case against SpaceX.
Musk has defended the hiring practices and suggested the “DOJ need to sue themselves” in a Twitter/X post. The claim came from the DOJ having the practice of hiring only U.S. citizens.
Photo: Shutterstock
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