Federal authorities are probing whether the EV company’s funds were being used for Mr Musk’s own personal use, The Wall Street Journal reported, citing people familiar with the matter.
The US attorney’s office in New York has sent subpoenas to current and former employees at Tesla, asking information about the company’s purchase of hard-to-get construction materials, and investigating whether the project involved appropriate use of the EV-maker’s funds, according to Bloomberg.
The strange project appears to be for a “dramatic glass-walled building” close to Tesla’s Texas headquarters, the Journal noted.
Prosecutors are also reportedly reviewing Tesla’s 2022 purchase order for a construction material – “a special kind of glass”.
But a mere investigation by federal agencies does not mean there is likely any criminal or civil proceedings ahead, as officials sometimes start inquiries that can lead to dead-ends.
It also remains unclear if the project is still under work, or if any construction material was ever delivered.
Tesla has not immediately responded to The Independent’s request for comments.
Mr Musk has previously expressed interest in building a “utopia” in Texas, constructing a whole new town from scratch on thousands of acres of farmland Tesla bought outside the state capital Austin.
In March, the Tesla titan attended meetings with land owners and real estate agents, where he and his staff outlined his ideas for the project, The Independent reported.
Mr Musk reportedly wants his staff around Austin – including employees at SpaceX, Tesla and the Boring Company – to be able to live in new homes for rents below market value.
Local court documents filed in January also show plans to build over 100 homes near “Snailbrook” – a reference to the Boring Company mascot “Gary the Snail.”
A town needs at least 201 residents and approval from a county judge to be incorporated, according to Texas law.
Documents also reveal further plans to build 110 more homes in the planned town “Project Amazing”.