Canadian Man Arrested in New York for Attempting to Sell Tesla’s Battery Technology
A Canadian man living in China was arrested in New York on Tuesday after being accused of trying to sell secret battery manufacturing technology belonging to Tesla. Klaus Pflugbeil, 58, was held without bail on a charge of theft of trade secrets after meeting with undercover agents on Long Island.
Federal prosecutors in Brooklyn revealed that Pflugbeil and his business partner, Yilong Shao, attempted to sell technology used to produce battery parts to the undercover agents. Shao, a Chinese citizen, remains at large. Both men were former employees of Hibar Systems, a Canadian company that Tesla acquired in 2019.
Court documents identified the company whose secrets were stolen as a “U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems,” matching the description of Tesla. Pflugbeil and Shao had access to drawings and documents that allowed others to copy the manufacturing process.
Following the sale of Hibar, the men formed a company to sell the stolen technology through various online platforms. Undercover agents met Shao at a trade show in Las Vegas in September and confirmed that the information was indeed secret. They then convinced Pflugbeil to come to New York to finalize the deal.
U.S. Attorney Breon Peace emphasized the seriousness of the case, stating that the government will prosecute those who engage in theft of trade secrets that undermine innovation and create potential national security risks. The arrest serves as a warning to individuals attempting to profit from stolen intellectual property.
