After boasting that he would “own no house”, it appears that Elon Musk has been secretly building one at Tesla’s expense.
US federal prosecutors are investigating Tesla’s use of company funds on a secret project, dubbed “Project 42”, which is described internally as a house for the company’s chief executive.
The US Attorney’s Office for the Southern District of New York has asked for information about personal benefits paid to Musk, how much Tesla spent on the project – which called for a spacious glass structure to be built in the Austin, Texas, area – and what it was for.
The Securities and Exchange Commission has also opened a civil investigation.
Under SEC rules, public companies must disclose transactions above $120,000 in which a related party, such as an executive officer, has a material interest. Any perks or other personal benefits worth more than $10,000 paid to senior executives must also be disclosed to investors.
In May 2020, Musk announced on Twitter – which he now owns – that he intended to “own no house”. Over the next two years he sold seven properties in California for around $130m.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
