The controversy around why Tesla ordered millions of dollars’ worth of special glass—reportedly for a glass-walled residence for CEO Elon Musk—may soon involve U.S. officials.
Last year a suspiciously large order of glazing triggered an internal investigation at the electric vehicle manufacturer, as company leaders tried to determine what it was going to be used for.
Now, both the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission will investigate the matter, reports the Wall Street Journal,citing unnamed sources.Both investigations are reportedly in an early stage, and so may not lead to a conclusion of wrongdoing by Tesla.
Musk is not directly involved in the procurement order in question, reports Bloomberg.
On X, Musk responded to reports of the probes by calling them “pretty funny,” and suggested the Wall Street Journal was in competition with The Babylon Bee,a satirical conservative publication.
Tesla, the SEC, and the U.S. Attorney’s Office for the Southern District of New York did not immediately respond to Fortune’srequest for comment made outside U.S. business hours.
What is Project 42?
The reported probe marks a new step in the controversy around a Tesla project internally dubbed “Project 42,” apparently earmarked for Tesla’s new hub outside Austin.
Last year, Bloomberg reported the EV manufacturer had launched an internal investigation after uncovering the large order of glass, with the company’s finance and internal audit groups trying to determine whether purchases were meant for Musk’s personal use.
Earlier this year, the Wall Street Journaloffered further details on what the glass was going to be used for: a house for Elon Musk. Documents showed a glass-walled structure, with one design looking similar to Apple’s retail outlet on Fifth Avenue in New York City.
Tesla leaders, including members of the company’s board, were concerned that company resources—including employee time—were being used for the project, and wanted to know if Musk was involved in the decision.
In terms of Musk’s current living arrangements, the owner of X—the social media network once known as Twitter—told the BBC in April he sometimes sleeps at the platform’s office in San Francisco. The billionaire also often claims that he stays at the homes of friends.
Perhaps looking to stay similarly close to his other ventures, Musk and his associates have reportedly bought thousands of acres of land outside Austin, near the Texas-based facilities of SpaceX and the Boring Co., both Musk-founded firms.
The group has explored plans to turn the site into its own town, which would allow it to set some of its own regulations, reported the Wall Street Journalin March.
Tesla moved its headquarters from California to Texas in 2021, and opened its Texas gigafactory near Austin in 2022. The company currently produces Model Y cars there and plans to make its Cybertruck pickup at the facility.