Tesla is reportedly under investigation by the DOJ and SEC over it’s mysterious ‘Project 42’::The project was internally believed to involve building a glass house for Elon Musk, the Journal previously reported.

  • Fisk400@feddit.nu
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    1 year ago

    When I read the headline I assumed that glass house was a technical term for some financial bullshit but no. He is just building a house with a lot of glass in it. Using company funds to build a private house is almost vanilla when it comes to musk.

    • T156@lemmy.world
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      1 year ago

      I thought it was a satirical article about how the companies kept him away from business operations by putting him in a glass house, where he could throw stones from.

  • AutoTL;DR@lemmings.worldB
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    1 year ago

    This is the best summary I could come up with:


    Tesla is facing scrutiny over its mysterious “Project 42” that was believed internally to involve building a glass house for Elon Musk, according to a recent report from The Wall Street Journal.

    The publication said, citing people familiar with the issue, that federal prosecutors are investigating whether Tesla used its own funds for Musk’s personal use, and is looking into how much the company has spent on the initiative, as well as its purpose.

    The US Attorney’s Office for the Southern District of New York issued subpoenas to multiple current and ex-Tesla employees, some of which have been asked to appear in court in September, Bloomberg reported on Wednesday.

    The project appeared to be for a “dramatic glass-walled building” and concept plans showed differing designs and features, but included residential elements like bedrooms, according to the report.

    At the time, the internal inquiry into the order had targeted Omead Afshar, an executive leading Tesla’s Texas factory, Bloomberg reported last year.

    On Wednesday, the publication reported that federal prosecutors were seeking information related to internal communications with Afshar, who was said to be involved in purchasing the construction materials.


    The original article contains 457 words, the summary contains 188 words. Saved 59%. I’m a bot and I’m open source!

  • 1984@lemmy.today
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    1 year ago

    Maybe he wants one of those glass cells that Magneto sits in… With no metal.

    • fapforce5@lemmy.world
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      1 year ago

      I don’t know, but my best guess would be either it’s a publicly traded company and needs to disclose how it spends its money, or that taxes weren’t paid for the personal use funds

      • SomeoneSomewhere@lemmy.nz
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        1 year ago

        Got it in two. Both, per the article:

        It can be illegal to use company funds for personal expenses — especially when dealing with a publicly traded company. If a public company were found to have used company funds for an executive’s personal use it could lead to an IRS investigation and lawsuits from shareholders.

        Elon doesn’t own all of Tesla. It’s a publicly traded company whose shares are held by millions(?) of people. The board and CEO are generally required to act in those owners’ best interests, not their own. They have leeway, but building the CEO a house is a lot closer to embezzlement (taking company funds for personal gain) than say a PR stunt. Board/CEO remuneration is fairly carefully controlled to avoid this kind of thing.

        As for tax, it looks like the US is a bit more lax with fringe benefit tax than other jurisdictions, but it could nonetheless apply.

        • Dntshoot@lemmy.world
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          1 year ago

          So if he were to give himself a bonus and use that money to build the house would it still be illegal? Genuinely asking

          • dm_me_your_feet@lemmy.world
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            1 year ago

            No CEO of a public company has the power to just “give himself a bonus” if the sum is to be any more than pocket money. The board has to approve it.

          • jonne@infosec.pub
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            1 year ago

            The board would need to approve of that bonus, and in turn the board is accountable to shareholders. If a CEO starts using a public company as a personal piggy bank, shareholders have grounds to sue.

    • FredericChopin_@feddit.uk
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      1 year ago

      Well the shareholders have a right to question company being spent on side projects that do not work to increase the value for shareholders.

      Sadly you can get away with a lot as a business just don’t piss off your share holders.