Wed. Oct 4th, 2023
    Tesla CEO Elon Musk Under Investigation for Personal Benefits and Glass House

    The U.S. Department of Justice (DOJ) is conducting a criminal investigation into the personal benefits that Tesla CEO Elon Musk may have received since 2017. The investigation also involves the use of company funds to construct a proposed glass house. The U.S. Attorney’s Office for the Southern District of New York has requested information about transactions between Tesla and other entities related to Musk.

    This latest development reveals that federal prosecutors are expanding their scrutiny beyond the glass house project, which has been dubbed “Project 42” internally. The Securities and Exchange Commission (SEC) is already investigating the planned glass house near Tesla’s factory in Texas.

    The DOJ and SEC are examining whether Tesla properly disclosed any perks or personal benefits provided to Musk. Tesla has previously stated that it does not offer perks to its top executives. However, employees raised concerns internally after millions of dollars’ worth of large-format glass panels were purchased by Tesla.

    Elon Musk denies the existence of a glass house, claiming that none has been built, is under construction, or is even planned. His recently published biography by Walter Isaacson does mention a glass house, but it states that Musk postponed its construction.

    The SEC requires public companies to disclose perks and personal benefits provided to top executives if the total value exceeds $10,000. Such benefits can include reimbursement for housing, private security, or private airplane usage.

    It is worth noting that Tesla is not the only company under investigation for executive perks. Both the SEC and DOJ have scrutinized other companies in relation to the disclosure and provision of personal benefits to top executives.

    – Wall Street Journal