Former Tesla Australia director Kurt Schlosser has pled guilty to two counts of insider trading at the Sydney Downing Centre Local Court.
This is unrelated to the recall issued for Tesla Model S and Model X vehicles, although it appears to be a Tesla-heavy news day, between the recall, Schlosser pleading guilty and Elon Musk’s firing of critics.
The news on Tesla Australia’s former boss pleading guilty to insider trading comes from The Australian Securities and Investments Commission (ASIC).
“On 16 September 2020, Mr Schlosser acquired 86,478 shares in the mining company Piedmont Lithium Limited after being informed, in his role as country director of Tesla Australia, of inside information regarding an in-principle agreement that Tesla Australia’s ultimate holding company, Tesla Inc, had reached with Piedmont for the supply of lithium,” ASIC wrote.
“After information about the agreement became public and Piedmont’s share price rose, Mr Schlosser sold his Piedmont shares for a net profit of $28,883.53.”
ASIC says that Schlosser communicated the inside information to one of his friends on September 16, 2020, knowing this friend would likely go on to buy shares in Piedmont.
On November 15 2022, Schlosser pled guilty to one count of trading while in possession of inside information and one count of communicating inside information to an associate (in breach of s1043A of the Corporations Act).
Schlosser will appear in Sydney District Court on December 16 2022, where he will be sentenced. The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC says such breaches of the Corporations Act carry a maximum penalty of 15 years imprisonment.
Gizmodo Australia has reached out to Tesla Australia and Piedmont Lithium for comment.