The Wall Street Journal reported on Wednesday that Tesla is under investigation over claims that it misappropriated company funds to embark on a covert glass house project for CEO Elon Musk.
The Security Exchange Commission (SEC), the market regulator, and US prosecutors are both looking into the initiative, according to the article.
The effort, known as effort 42, was the subject of complaints from Tesla employees to the company’s board, according to a previous story in The Wall Street Journal, and an internal probe was conducted as a result.
Plans intended for a large glass structure to be built close to the headquarters of the electric vehicle manufacturer in the Austin region.
The article stated that the investigations were in their early stages and that charges may not be brought.
