Tesla may have looked into Elon Musk’s potential wrongdoing. According to sources cited by The Wall Street Journal, the board of the EV manufacturer opened an inquiry because it was worried Musk would be using company money to construct a home close to the Gigafactory in the Austin region. The endeavor, known as “Project 42,” is thought to include the acquisition of millions of dollars worth of unique glass; it is so significant that it caught the attention of employees the previous year. Large-scale land purchases in the region have also reportedly been made by limited liability companies connected to Musk and company executives.
The board was curious to know whether Musk was involved and whether any employee time had been allocated to the residence
A “twisted hexagon” or a glass cube resembling Apple’s 5th Avenue shop were two design ideas for the home. The presence of beds, bathrooms, and a kitchen gave the impression that this was a private area, according to the tipsters. The investigation’s status and outcomes remain unknown. Years ago, Tesla shut down its public relations division, and as of this writing, Musk hasn’t responded to the report. But according to reports, the board was curious to know whether Musk was involved and whether any employee time had been allocated to the residence. Last year, Bloomberg Bloomberg learned of the glass order last year but didn’t know about the board or the nature of Project 42.
Executives occasionally get benefits like private jets. However, there are different rules for these prizes, and Tesla takes a somewhat stringent stance. For every spending exceeding $120,000 when a linked person, such as the CEO, has a material interest, the automaker mandates a board committee audit. A prominent tech CEO has already come under fire for their spending.
Sheryl Sandberg, the outgoing COO, was the subject of an investigation by Meta after it was claimed that she had used corporate funds for personal purposes, such as wedding preparations or efforts to bury a report that was disparaging of her ex-partner Bobby Kotick. But this situation stands out because of Musk’s reputation as a significant CEO. Legal issues are nothing new to the leader. In addition to surviving a defamation case brought by British cave explorer Vernon Unsworth over unfounded “pedo guy” allegations, he is still engaged in a legal battle with the Securities and Exchange Commission over tweeting financial data.
