Tesla Faces Federal Scrutiny for Mysterious ‘Project 42’ to Build Elon Musk a Glass Mansion

Federal agencies, including the DOJ and the SEC, have initiated investigations into Tesla’s secretive “Project 42,” raising questions about the company’s use of funds to potentially benefits to CEO Elon Musk. The project involved building a large glass structure that seemingly is intended to serve as a mansion for Musk.

The Wall Street Journal reports that Tesla has found itself under the microscope of both the DOJ and SEC. The federal agencies are probing into a hush-hush initiative within the company, internally referred to as “Project 42.” The project, described as a “house for Chief Executive Elon Musk,” is under scrutiny for its use of company funds and whether it serves any personal benefits to Musk.

Breitbart News reported in July that the company had launched an internal investigation of the mysterious project:

Inside Tesla, “Project 42” was known for its ambitious plans to erect a dramatic glass-walled building near the company’s headquarters. One design featured a structure resembling a twisted hexagon on waterfront property with Tesla’s factory in the distance. Other designs showed a large glass box with a residential area that appeared to include a kitchen, bathrooms, and bedrooms. This reportedly reminded people of Apple’s Fifth Avenue store in Manhattan.

However, the project drew attention and scrutiny from within the company. The company placed orders for specialized glass — the type of large-format panels used on building facades — totally millions of dollars. These orders sparked concern among some employees about what the materials would be used for. These concerns led to an internal investigation by Tesla’s board members to determine whether company resources had been misused and if Musk himself had a role in it.

According to sources, the U.S. Attorney’s Office for the Southern District of New York is seeking information related to personal benefits that given to Elon Musk. They are also interested in knowing how much money Tesla spent on a project that involved constructing a large glass structure in the Austin, Texas region, and for what purpose it was intended.

It appears that the Tesla board had its reservations about the project as well. Earlier reports indicate that board members had initiated an internal investigation to determine if company resources were being misused for the project and whether Musk was personally involved. However, the outcome of this internal probe remains undisclosed.

The SEC has also opened a civil investigation into “Project 42,” seeking similar information from Tesla. Musk has a long history of butting heads with the SEC, which ordered him to have a “Twitter sitter” after his infamous “funding secured” tweet about taking Tesla private.

The DOJ and SEC investigations are in their early stages and have not led to any formal allegations of wrongdoing. Tesla has not responded to requests for comments on the ongoing investigations.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan