Elon Musk has been taking risks in his business ventures to make exponential profits. However, the efforts of the billionaire have been in vain due to dozens of lawsuits and federal probes against Musk and his ventures. His recent Twitter buyout has proved expensive due to $14 million worth of lawsuits against the company. Due to the platform, his other ventures, like Tesla, have also suffered due to unhappy investors and shareholders.
In 2018, Elon Musk took to Twitter to announce that he would be procuring private funding to take Tesla private, which inflated the price of the stock. However, the funding did not get through, and many stockholders sued Musk for falsely inflating the prices and losing money. Tesla has also been suffering from consumer complaints and many technical errors in its products. Though Tesla got a clean chit from the Twitter fraud, it is again on the radar of the federal investigation as the CEO of the company has misused the funds to build a secret house project.
A Federal Probe Against Elon Musk Is Launched For Using Tesla Funds To Build A Glass Structure
In February 2023, Elon Musk was found not liable for the Tesla fraud lawsuit filed by the investors. However, federal agencies are again investigating Musk’s financial activities over a house being built in Austin, Texas, near Tesla’s headquarters.
As per The Wall Street Journal, the U.S. Attorney’s Office for the Southern District of New York has sought information about how much money was transferred for a project called ‘Project 42.’
In July 2023, the Tesla board launched a probe against Musk for diverting the company’s funds to build a glass house in Texas. The Securities and Exchange Commission also opened a civil investigation against Elon Musk to find out whether the billionaire is involved in the project.
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What Is Project 42?
Tesla workers were employed to work on a project called ‘Project 42’ in 2022. It is a spacious glass building that the billionaire is constructing near the headquarters of Tesla. It is reported that the glass building was envisioned to be in the shape of a twisted hexagon. Tesla lawyers and board members delved into the project after they came to know that the Tesla owner was using millions of dollars to purchase specialized glass.
The federal probe comes five months after The WSJ reported that Elon Musk is erecting a huge township project in Austin, which is in Bastrop County. The aim is to create affordable housing conditions for the employees at his business ventures, including the tunneling venture, The Boring Co. It has already created 110 homes for the tunneling venture company.
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