The US Department of Justice (DOJ) has announced a German-Canadian national, Klaus Pflugbeil, has been sentenced to two years in federal prison for his role in a scheme to steal and sell electric vehicle (EV) trade secrets belonging to Tesla.
Pflugbeil, a dual citizen of Germany and Canada residing in China, conspired with his business associate, Yilong Shao, to market proprietary battery manufacturing technology to undercover FBI agents posing as businesspeople from Long Island, New York. The technology in question originated from a leading US-based electric vehicle manufacturer, which prosecutors refrained from naming.
However, all signs point to Tesla due to details of the case that align closely with the 2019 acquisition of Canadian company Hibar Systems, a specialized manufacturer of battery assembly lines.
Court documents reveal that Pflugbeil and Shao previously worked for Hibar before the acquisition. Using their insider knowledge, the pair established their own EV battery manufacturing company, leveraging stolen trade secrets to design and market equipment identical to that produced by their former employer.
Their operations extended across China, Canada, Germany, and Brazil, creating direct competition with Tesla’s battery technology business.
The theft came to light during a trade show in Las Vegas in 2023, where Shao met undercover FBI agents. Following this interaction, Pflugbeil submitted a business proposal explicitly showcasing the stolen Tesla trade secrets. Prosecutors stated that the duo’s actions generated over $1.3 million in revenue before law enforcement intervened.
While Pflugbeil will now begin his 24-month prison sentence, Shao remains at large, potentially continuing the operation. Authorities have not disclosed Shao’s whereabouts or further plans to apprehend him.
