The electric car manufacturer has been accused of misusing the company’s funds in connection with the construction project. The case is being investigated by federal prosecutors and the US Securities and Exchange Commission.
In the United States, federal prosecutors are investigating allegations against Tesla, according to which the electric car manufacturer misused the company’s funds, the CEO Elon Musk’s to the secret glass house project. The matter was reported on Wednesday by a US newspaper The Wall Street Journal.
In addition to the prosecutors, the construction project is also being investigated by the US Securities and Exchange Commission (SEC).
The Wall Street Journal reported earlier in July that Tesla employees had complained to the company’s board of directors about the project, known internally as Project 42. The company had been conducting an internal investigation into whether the company’s funds had been misused in connection with the secret project and whether Musk was personally involved in possible abuses. .
The plans were for a spacious glass building to be built near the electric vehicle company’s headquarters in Austin, Texas.
According to the newspaper, the investigations are in the early stages, and they may not lead to official charges of wrongdoing.
In the investigation, there are also misleading claims
SEC rules require listed companies to disclose transactions of more than $120,000 in which, for example, the CEO has a material interest. The rules also require disclosure to investors of any fringe benefits or other personal benefits paid to senior executives worth more than $10,000.
In recent years, the SEC has taken several civil actions against publicly traded companies for failing to report benefits given to CEOs or other officers.
Federal prosecutors have also sought to obtain information about the range of Tesla’s electric vehicles, sources familiar with the matter say. The Reuters news agency reported in July that Tesla had inflated its forecast of the distance the company’s vehicles could travel on a single charge.
The Justice Department and the SEC have also opened an investigation into whether Tesla misled customers and investors about the functionality of the advanced driver assistance system known as Autopilot.
Source: AFP