Manhattan federal prosecutors are investigating Tesla’s use of company funds on a secret project that had been described internally as a house for Chief Executive Elon Musk, people familiar with the matter said.
The U.S. Attorney’s Office for the Southern District of New York has sought information about personal benefits paid to Musk, how much Tesla spent on the project—which called for a spacious glass structure to be built in the Austin, Texas, area—and what it was for, the people said.