Elon Musk is under investigation over CEO benefits received from Tesla and whether they were properly disclosed. According to a new report, the perks may date back further than investigators previously realized, and broadened interest from federal prosecutors appears to signal the pursuit of potential criminal charges.
Federal prosecutors are conducting an investigation of Musk and Tesla over the disclosure and use of company resources for various personal benefits, including a project to build a house for the CEO, according to a report from The Wall Street Journal. Musk is under investigation from the U.S. Department of Justice (DOJ) over the Tesla benefits, which may date back as far as 2017. Additionally, criminal charges could be on the table.
The WSJ says it spoke with “an array of people” about Tesla and the government investigations for this report.
According to people familiar with the matter, the U.S. Attorney’s Office for the Southern District of New York has also been investigating Musk for transactions made between Tesla and other entities connected to him. Prosecutors on the case have alluded to potential involvement from a grand jury, the WSJ reports.
In addition, a separate civil investigation has been opened into allegations of the house project for Musk by the Securities and Exchange Commission (SEC). The housing plans were internally dubbed “Project 42,” set to construct a large glass building near Tesla’s Gigafactory Texas.
The SEC requires publicly traded companies to disclose executive perks and benefits if their total exceeds $10,000, including reimbursement for private security, housing or airplane use. Companies are also required to disclose transactions over $120,000 in which executive officers have a material interest.
Notably, Musk posted last year about wanting to build himself a home on a nearby horse farm on the other side of the Colorado River from Giga Texas. He met with an architect to talk designs and even suggested utilizing a glass shard coming out of a lake, according to Walter Isaacson’s recent biography of the billionaire. Ultimately, Isaacson says Musk just “put off building it.”
Project 42 and its purpose were considered a secret within the company, the WSJ explains.
When employees became worried about the use of millions of dollars in glass panels ordered by Tesla, lawyers and board members began scrutinizing the project. One such concerned party reportedly included former CFO Zachary Kirkhorn, who stepped down last month but will remain through the end of the year.
Earlier this month, Musk denied claims of his plans to have Tesla build a glass house or any house in a post on X, and he and his representatives didn’t respond to the WSJ’s requests for comment.
Just want to reiterate that there is no glass house (metaphors don’t count lol) built, under construction or planned!
I’m not building any house of any kind anywhere. Period.
— Elon Musk (@elonmusk) September 1, 2023
“Companies have been paying attention to the SEC’s enforcement efforts and tightening their controls in this area, which is likely resulting in changes to perks or increased disclosures,” says Sidley Austin lawyer and regulatory enforcement group leader Stephen L. Cohen. “But I believe there is also a view at the SEC that the public cares about executive perks.”
Tesla toxic workplace lawsuit from shareholders dismissed, for now
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Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
News
Tesla FSD (Supervised) is about to go on “widespread” release
In a comment last October, Elon Musk stated that FSD V14.2 is “for widespread use.”
Tesla has begun rolling out Full Self-Driving (Supervised) V14.2, and with this, the wide release of the system could very well begin.
The update introduces a new high-resolution vision encoder, expanded emergency-vehicle handling, smarter routing, new parking options, and more refined driving behavior, among other improvements.
FSD V14.2 improvements
FSD (Supervised) V14.2’s release notes highlight a fully upgraded neural-network vision encoder capable of reading higher-resolution features, giving the system improved awareness of emergency vehicles, road obstacles, and even human gestures. Tesla also expanded its emergency-vehicle protocols, adding controlled pull-overs and yielding behavior for police cars, fire trucks, and ambulances, among others.
A deeper integration of navigation and routing into the vision network now allows the system to respond to blocked roads or detours in real time. The update also enhances decision-making in several complex scenarios, including unprotected turns, lane changes, vehicle cut-ins, and interactions with school buses. All in all, these improvements should help FSD (Supervised) V14.2 perform in a very smooth and comfortable manner.
Elon Musk’s predicted wide release
The significance of V14.2 grows when paired with Elon Musk’s comments from October. While responding to FSD tester AI DRIVR, who praised V14.1.2 for fixing “95% of indecisive lane changes and braking” and who noted that it was time for FSD to go on wide release, Musk stated that “14.2 for widespread use.”
FSD V14 has so far received a substantial amount of positive reviews from Tesla owners, many of whom have stated that the system now drives better than some human drivers as it is confident, cautious, and considerate at the same time. With V14.2 now rolling out, it remains to be seen if the update also makes it to the company’s wide FSD fleet, which is still populated by a large number of HW3 vehicles.
News
Tesla FSD V14.2 starts rolling out to initial batch of vehicles
It would likely only be a matter of time before FSD V14.2 videos are posted and shared on social media.
Tesla has begun pushing Full Self-Driving (Supervised) v14.2 to its initial batch of vehicles. The update was initially observed by Tesla owners and veteran FSD users on social media platform X on Friday.
So far, reports of the update have been shared by Model Y owners in California whose vehicles are equipped with the company’s AI4 hardware, though it would not be surprising if more Tesla owners across the country receive the update as well.
Based on the release notes of the update, key improvements in FSD V14.2 include a revamped neural network for better detection of emergency vehicles, obstacles, and human gestures, as well as options to select arrival spots.
It would likely only be a matter of time before FSD V14.2 videos are posted and shared on social media.
Following are the release notes of FSD (Supervised) V14.2, as shared on X by longtime FSD tester Whole Mars Catalog.
Release Notes
2025.38.9.5
Currently Installed
FSD (Supervised) v14.2
Full Self-Driving (Supervised) v14.2 includes:
- Upgraded the neural network vision encoder, leveraging higher resolution features to further improve scenarios like handling emergency vehicles, obstacles on the road, and human gestures.
- Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
- Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances.
- Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
- Added additional Speed Profile to further customize driving style preference.
- Improved handling for static and dynamic gates.
- Improved offsetting for road debris (e.g. tires, tree branches, boxes).
- Improve handling of several scenarios including: unprotected turns, lane changes, vehicle cut-ins, and school busses.
- Improved FSD’s ability to manage system faults and improve scenarios like handling emergency vehicles, obstacles on the road, and human gestures.
- Added Arrival Options for you to select where FSD should park: in a Parking Lot, on the Street, in a Driveway, in a Parking Garage, or at the Curbside.
- Added handling to pull over or yield for emergency vehicles (e.g. police cars, fire trucks, ambulances).
- Added navigation and routing into the vision-based neural network for real-time handling of blocked roads and detours.
- Added additional Speed Profile to further customize driving style preference.
- Improved handling for static and dynamic gates.
- Improved offsetting for road debris (e.g. tires, tree branches, boxes).
- Improve handling of several scenarios, including unprotected turns, lane changes, vehicle cut-ins, and school buses.
- Improved FSD’s ability to manage system faults and recover smoothly from degraded operation for enhanced reliability.
- Added alerting for residue build-up on interior windshield that may impact front camera visibility. If affected, visit Service for cleaning!
Upcoming Improvements:
- Overall smoothness and sentience
- Parking spot selection and parking quality
SpaceX Starship Version 3 booster crumples in early testing
Tesla FSD (Supervised) is about to go on “widespread” release
