The US Federal Justice and the Securities and Exchange Commission (SEC) have begun an investigation into the possible use of Tesla funds to finance a personal project of its boss, Elon Musk. This information, published by the Wall Street Journal, raises doubts about transparency and business ethics in the company.

According to sources cited by the Wall Street Journal, the federal prosecutor’s office in Manhattan has requested information regarding “Personal benefits paid to Elon Musk for the amount spent by Tesla on this project (…) and for its future use”. The mysterious project in question, known domestically as Project 42, is a cause for concern construction of a tall glass structure in the Austin, Texas area where Tesla’s headquarters are located.

Doubts will soon arise?

The company’s alleged involvement in the project also prompted an SEC investigation. However, it should be noted that these two investigations are at a “preliminary stage” and may not lead to formal charges of embezzlement. Nevertheless, a shadow of doubt hangs over Tesla’s resource management and Elon Musk’s actions in this matter.

The Wall Street Journal previously reported this in July, revealing that Tesla’s board of directors had launched an internal investigation to determine whether company resources were misused for “Project 42” and whether Elon Musk was involved.

What are the implications for Tesla and Elon Musk?

This internal investigation was launched after employees raised concerns about the order of several million dollars worth of special glass walls, the purpose of which remains unknown.

As Tesla continues to play a leading role in electric vehicles, especially at the time of presentation of Tesla Model 3 Highlandand sustainable energy, the results of these investigations may affect the reputation of the company and, above all, the reputation of Elon Musk.

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