Tesla Allegedly Suspected Elon Musk of Utilizing Company Funds to Construct a Glass Residence

According to sources from The Wall Street Journal, Tesla’s board has reportedly conducted an investigation into potential misconduct by CEO Elon Musk. The investigation was launched due to concerns that Musk may have been utilizing company funds to construct a residence near the Gigafactory in the Austin area, known as “Project 42.” This initiative allegedly involved the purchase of a significant amount of expensive glass, which caught the attention of employees in the previous year. Additionally, it has been discovered that limited liability firms associated with Musk and other executives have acquired substantial amounts of land in the same vicinity.

Concepts for the house included either a “twisted hexagon” or a glass cube reminiscent of Apple’s 5th Avenue store. This appeared to be a personal space as it included bedrooms, bathrooms and a kitchen, advisers said.

The status and results of the investigation are unknown. Tesla disbanded its PR department years ago, and Musk has not commented on the report as of this writing. However, the board wanted to know if Musk was involved and if the employee’s time was dedicated to the house. Bloomberg learned about the glass order last year, but didn’t know about the boards or the nature of Project 42.

Managers sometimes get perks like jets. However, the practices for these rewards vary, and Tesla’s approach is relatively strict. The automaker requires a board committee review of all expenses over $120,000 if a related party, such as the CEO, has a material interest.

This isn’t the first time a high-profile tech executive has had to scrutinize expenses. Meta investigated outgoing chief operating officer Sheryl Sandberg over allegations she used company resources to further personal goals, such as planning a wedding or trying to debunk a news story critical of her former partner Bobby Kotick. However, Musk’s profile as a great CEO makes this case stand out.

The director is no stranger to legal entanglements. He remains embroiled in a battle with the Securities and Exchange Commission over the tweeting of financial information and survived a defamation trial by British caver Vernon Unsworth over baseless “beast-man” accusations.