The sweeping probe by Manhattan federal prosecutors into Tesla’s use of company funds suggest they are pursuing potential criminal charges.
According to the Wall Street Journal, the US Attorney’s Office for the Southern District of New York is closely examining personal benefits the electric carmaker may have given its chief executive.
Musk, the richest man in the world, famously does not draw a cash salary from Tesla but is compensated in stock options.
But prosecutors are investigating whether Tesla properly disclosed any perks Musk might have received in his role, according to the Wall Street Journal.
The investigation includes a proposed house for the billionaire known as “Project 42”.
Plans for the structure suggested it would be “an expansive glass building” near Tesla’s Austin-based headquarters, the Wall Street Journal reported.
Musk has stated there is no glass house “built, under construction or planned”, joking “metaphors don’t count”.
He did not address past plans for a home, but said on X, his social media platform formerly known as Twitter, “I’m not building any house of any kind anywhere.”
In 2020, Musk said he intended to sell “almost all” his physical possessions and vowed to “own no” home.