Chinese man on the run accused of stealing billions of Tesla trade secrets with Canadian partner

Chinese man on the run accused of stealing billions of Tesla trade secrets with Canadian partner

2024-03-20 09:49:12
Tesla charging equipment. (Tesla ‘X’ account picture)

A Chinese and a Canadian have been charged in the United States with stealing battery manufacturing technology from electric car maker Tesla and setting up their own company in China to sell the patented information. The two of them live in Ningbo, China. The Canadian involved in the case was arrested by US federal law enforcement officers when they were lured to Long Island in the United States to “negotiate business.” The relevant technology was worth millions of dollars.

The two defendants are 58-year-old Canadian national Klaus Pflugbeil and 47-year-old Chinese national Shao Yilong (Pinyin).Press releaseIt was pointed out that the two were suspected of transmitting trade secrets of an American electric car company.According to the Associated Pressnews coveragethis company is Tesla.

Arrested following being lured to the United States by a snake

According to comprehensive press releases and news agency reports, the two defendants operate a company in China that sells battery manufacturing technology, including electric vehicle batteries. They used Tesla’s sensitive and proprietary information to set up a company, and even used Tesla products as a solicitation.

Prosecutors said Tesla spent regarding HK$100 million developing battery technology. (Tesla ‘X’ account picture)

Pflugbeil passed a number of Tesla trade secrets to federal law enforcement officers who released the snake yesterday morning, and went to Nassau County, Long Island to meet with the snake release officer. When he arrived at the meeting place, he was immediately arrested and will appear in a U.S. court today, U.S. time. . As for the other defendant in the case, Shao Yilong, he is still at large.

Prosecutors pointed out that the defendant set up a company in China and blatantly stole the trade secrets of an American company, and the research and development of these secrets involved millions of dollars in costs. The theft of U.S. economic intelligence not only harmed the company involved, but also Threatens the financial foundation of the United States. The press release added that the relevant battery technology cost US$13 million (approximately HK$100 million) to develop.

Investigators found Chinese defendant in Las Vegas last year

The two defendants were once employees of a Canadian manufacturer. As early as 2019, they had used Tesla’s trade secrets to establish their own company. The press release quoted a conversation record between the two as showing that Shao Yilong once stated that they had obtained PDF versions of all Tesla-related technical original drawings. By 2020, the duo’s business had expanded to China, Canada, Germany and Brazil. They even advertised as an alternative to Tesla: “Are you looking for Tesla metering pumps and spare parts? Look no further.”

Investigators attended an industry trade show in Las Vegas last September and came into contact with Shao Yilong as a guest. By November last year, snake release personnel obtained a 66-page technical document from Pflugbeil’s email. The other party stated that the document contained patent information and must be kept confidential. The unit responsible for the operation is affiliated with the “Disruptive Technology Strike Force” of the U.S. Department of Justice and Commerce. It was established to protect the U.S. supply chain and prevent important technologies from being seized by totalitarian governments and hostile countries.

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