Tesla Exposed To Internal Corruption? Musk And His Key Lieutenants May Be Involved

Elon Musk's chief of staff is being investigated internally for possibly buying products for Elon Musk's personal use in the name of Tesla, and it's unclear what role Elon Musk played in that.

On Thursday, media outlets cited sources as saying that Omead Afshar, the executive in charge of Tesla's Texas plant, is being investigated internally for possible corruption in several transactions he handled.

Afshar allegedly bought some construction materials in Tesla's name, including a special type of glass that is now hard to obtain. He indicated to the company and workers that the material would be used for a special project, but the material may have ended up being used for Elon Musk's personal use.

The media subsequently reported that several Tesla employees had been fired as the investigation unfolded. And Afshar is likely to leave Tesla as well, the sources said.

Afshar had worked in the Tesla CEO's office for five years, and his current official position is director of the office. Afshar has been seen as Elon Musk's chief of staff since his former top deputy, Sam Teller, left in 2019.

His current job is as the de facto leader of Tesla's superfactory in Texas, according to two former Tesla employees.

On Wednesday, Afshar also tweeted his congratulations to the Texas plant for completing the manufacture of 2 million electric vehicles, of which he is proud.

The use of corporate funds for personal expenses is illegal under U.S. law, and any such discovery in a public company could lead to an IRS investigation as well as shareholder lawsuits.

Investigators are reportedly still determining whether the material in question will be available for Elon Musk's personal use, and it is unclear whether Elon Musk will be implicated.

On the U.S. stock market Thursday, Tesla shares closed up 9.78 percent, buoyed by its second-quarter earnings report.

Tesla's second-quarter revenue rose 42 percent year-over-year and earnings per share reached $2.27, both higher than expected. In addition, the company sold 75% of its bitcoin assets at the right time, which prevented a significant investment loss.

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John Murphy

John Murphy is the founder of TOPCARS Tesla Aftermarket Accessories, as well as an investor in Tesla and owner of the Model Y. He posts about Tesla news while running the site on a daily basis.

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