Tesla stock investigated secret project

author: FutureCar Staff    

In a surprising turn of events, Tesla's stock has experienced a remarkable resurgence in 2023, bouncing back from the challenges it faced in the previous year. Despite a difficult 2022, TSLA has emerged as a standout performer among major tech companies, with its stock price more than doubling since the beginning of the year. This impressive revival has captured the attention of investors worldwide.

However, recent reports suggest that the stock of the world's largest electric vehicle maker may be in trouble. On August 30, it was revealed that top US regulators, including the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), have launched an investigation into Tesla over a secret project. The project, internally referred to as "Project 42," involved the use of corporate funds to build a house for Tesla's CEO, Elon Musk.

The US Attorney's Office for the Southern District of New York has requested information regarding the personal benefits Musk received from the project, the amount of Tesla's investment, and the purpose of the project. The SEC's regulations require public companies to report transactions involving related parties, such as top executives, receiving a material interest of over $120,000.

Notably, Tesla's board members had already looked into the project after concerns were raised by employees regarding the company's use of millions of dollars in specialized glass. However, the current status of the project and whether the glass was ever delivered to Tesla remain unknown.

As of August 31, Tesla's stock was valued at $256.90, experiencing a slight decrease of 0.11% in the past 24 hours. In premarket trading, the stock slipped by a further 0.53% to $255.55. Despite this, the automaker has seen a significant increase of over 12% in its share price over the past week, although its monthly performance sits at a negative 4%. Year-to-date, TSLA remains up by more than 116%.

It is important to note that the investigations into Tesla are still in their preliminary stages, and the outcomes are uncertain. At this point, there are no formal allegations of wrongdoing, highlighting the speculative nature of these inquiries. However, the possibility of regulatory escalation and legal action, if incriminating evidence is found, adds a sense of caution to the otherwise resurgent trajectory of Tesla's stock.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative, and there is a risk of capital loss.

FutureCar Staff