Klaus Pflugbeil Sentenced for Tesla Trade Secret Theft

Klaus Pflugbeil, a German-Canadian residing in China, was sentenced to 24 months in U.S. prison for stealing trade secrets from Tesla to benefit his own electric vehicle battery business. Pflugbeil conspired with Yilong Shao, who remains at large, to sell Tesla's manufacturing secrets to undercover FBI agents posing as potential clients. The Justice Department highlighted that Pflugbeil's actions had national security implications, as they aimed to bolster a China-based company in a critical industry. Pflugbeil had previously worked for a Canadian manufacturer acquired by Tesla in 2019, using proprietary information to create a competing venture. The business they built operated across multiple countries, including China, Canada, Germany, and Brazil, producing similar battery assembly equipment. This case reflects ongoing concerns about intellectual property theft and its impact on U.S. companies.