Elon Musk’s “Secret House” project sparks a US probe into Tesla
Federal prosecutors are investigating Tesla’s use of company funds for a secret project internally described as a home for CEO Elon Musk The Wall Street Journal reported Wednesday, citing people familiar with the matter.
Neither Musk nor a spokesman for the US Attorney’s office in Manhattan immediately responded to requests for comment.
No dollar figures were released and the newspaper said the home was near Austin, Texas.
The Journal reported in July Tesla board members investigated whether company resources had been misused in this project.
The Securities and Exchange Commission has also launched a civil investigation, the Journal reported.
An SEC spokesman said the agency would not comment on the existence or non-existence of a possible investigation.
The investigation is still in its early stages and may not lead to charges, the journal said.
Prosecutors were looking for information about personal benefits for Musk, the world’s richest man, as well as how much Tesla spent on the project and what it was intended for, the Journal reported.
The newspaper said prosecutors are also looking into a shorter-than-expected range for Tesla electric vehicles.
Reuters reported in July, citing experts who tested or studied them, that the cars often don’t achieve the range estimates and projections given by the cars’ own equipment.
