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WSJ Raises Doubts Over Exaggerated Vehicle Ranges of [Company]
Two government agencies are currently investigating Tesla’s secretive “Project 42,” according to The Wall Street Journal. The project, which involves the construction of a glass structure resembling a living space near Tesla’s facilities in Austin, Texas, has raised concerns about the potential misuse of company funds by CEO Elon Musk. The US Attorney’s Office for the Southern District of New York has requested information regarding the expenses incurred by Tesla for the project and the personal benefits enjoyed by Musk. Additionally, the Securities and Exchange Commission (SEC) has initiated a civil probe and is seeking the same information.
The investigation was initiated after employees expressed concerns about the special glass ordered for the project, which they believed would cost the company millions of dollars. It remains unclear whether the investigation has been concluded and if the order for the special glass was fulfilled.
Under SEC regulations, transactions exceeding $120,000 that involve an executive with a material interest must be disclosed. Furthermore, any personal benefits exceeding $10,000 paid to executives must also be disclosed to investors. While the investigations are still in the early stages, no formal charges have been filed yet.
In addition to the Project 42 investigations, Tesla is facing inquiries from federal prosecutors regarding the driving range of its vehicles. Reuters reported last month that Tesla’s electric vehicles frequently fall short of their range estimates, prompting the company to establish a team dedicated to canceling service appointments related to driving range complaints.