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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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TechTesla

Was Tesla really trying to build a glass house for CEO Elon Musk? U.S. prosecutors are reportedly looking into it

Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
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Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
Down Arrow Button Icon
August 31, 2023, 7:04 AM ET
Chief Executive Officer of SpaceX and Tesla and owner of Twitter, Elon Musk gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre on June 16, 2023 in Paris, France.
Elon Musk, pictured in June 2023, is the owner of X, formerly known as Twitter.Chesnot/Getty Images

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.

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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’s request 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 Journal offered 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 Journal in 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. 

Join our exclusive webinar on May 28, featuring tech leaders from Orange, Mars, Reckitt, and Saint-Gobain. Apply to attend and receive Fortune’s editorial takeaways.
About the Author
Nicholas Gordon
By Nicholas GordonAsia Editor
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Nicholas Gordon is an Asia editor based in Hong Kong, where he helps to drive Fortune’s coverage of Asian business and economics news.

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