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Tesla trade secrets case ends with two-year prison sentence

Credit: Andrea Conway/X

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Tesla has completed yet another lawsuit over trade secret theft, with a top U.S. legal agency this week sentencing one person to two years in prison after he started his own battery business using proprietary information from the U.S. automaker.

After German-Canadian dual citizen Klaus Pflugbeil was arrested in the U.S. earlier this year and pleaded guilty to stealing trade secrets in June, the U.S. Department of Justice (DOJ) said on Monday that it has officially sentenced Pflugbeil to two years in prison, according to a report from Reuters.

“In stealing trade secrets from an American electric vehicle manufacturer to use in his own China-based company, Pflugbeil’s actions stood to benefit the (People’s Republic of China) in a critical industry with national security implications,” said Matthew Olsen, U.S. Assistant Attorney General.

Pflugbeil, a resident of China, was charged in March after prosecutors said he conspired with business partner Yilong Shao to sell a Tesla battery manufacturing secret to undercover FBI agents who claimed to be businesspeople from Long Island. Shao met with the agents in Las Vegas in 2023, and Pflugbeil sent them a business proposal specifically listing the Tesla trade secrets.

RELATED: Tesla reaches ‘conditional settlement’ in Rivian trade secret suit: report

Prosecutors said the two built their electric vehicle (EV) battery business on trade secrets from a “leading U.S.-based electric vehicle company,” without disclosing the company. Despite not name-dropping Tesla, the suit said that the U.S. company had acquired a Canada-based battery production line manufacturer, fitting the description of Tesla’s 2019 acquisition of Hibar.

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According to the DOJ, Pflugbeil and Shao had worked for the unnamed Canadian company prior to Pflugbeil joining Shao’s company in 2020. Prosecutors said that the company had locations in China, Canada, Germany, and Brazil, largely producing the exact same battery assembly equipment as their former employer.

Although Shao was also charged, he remains at large at the time of writing.

Tesla’s other trade secret lawsuits

Tesla has pursued quite a few trade secret lawsuits over the years, with the company last month coming to a settlement for an undisclosed amount with automaker Rivian, following a years-long case over claims that it stole intellectual property through poached workers.

The U.S. automaker also settled with Chinese EV startup Xpeng Motors in 2022, after filing a lawsuit saying that a specific employee had stolen Autopilot code to be used to develop similar software for the China-based manufacturer’s vehicles. Last year, Tesla also filed a lawsuit against Chinese chip designer Bingling, alleging that the company also stole “technical secrets” and other intellectual property from the company.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Tesla Dojo trade secrets lawsuit officially settles out of court

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla expands driverless Robotaxi geofence in Austin

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Credit: @JoeTegtmeyer/X

Tesla has expanded the operational geofence for its driverless Robotaxi service in Austin, Texas, marking the first such increase in some time. The updated Service Area for Robotaxi in Austin now spans about 288 square miles and is roughly 9 percent larger than the previous boundary.

This incremental growth adds approximately 24 square miles of coverage, bringing the prior zone of roughly 264 square miles into a broader footprint that better serves northern suburbs.

The expansion extends the geofence northward toward Pflugerville along the US 183 corridor, incorporating additional neighborhoods north of the Domain and areas such as Mesa Park. These additions include higher-end residential and commercial districts that previously sat just outside the allowed operating zone.

Riders can now request unsupervised trips that begin or end in these newly included locations, provided the entire route remains inside the digital boundary:

Tesla first launched public Robotaxi operations in Austin in mid-2025 with a modest initial zone of about 20 square miles. Subsequent enlargements in 2025 and early 2026 steadily grew the map until it covered much of the metropolitan area.

After the last major update roughly ten months earlier, the company held the boundary steady while it collected additional miles and refined the FSD suite.

The modest nine percent increase still matters for daily utility. Longer trips become possible, more residents gain access, and the fleet can accumulate more diverse real-world data across new road types and traffic patterns. Observers note that the added territory aligns with existing Tesla service infrastructure, which could support more efficient vehicle staging in the North end of Austin.

Although the geofence has grown, Tesla continues to operate a relatively small unsupervised fleet in the city. The company has emphasized safety and software readiness over rapid geographic scaling. This latest map update signals that Tesla remains committed to expanding Robotaxi availability in its home market as it prepares for further software improvements and potential Cybercab deployments.

The 288-square-mile zone now gives Austin riders one of the larger driverless service areas currently available in the United States.

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Elon Musk’s Grok can basically control anything in your Tesla now

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Credit: Tesla

Tesla’s 2026 Summer Update turns Grok from a talking companion into a true in-car controller, with considerably expanded capabilities. Where the assistant once answered questions and handled navigation, it can now operate hardware and software through ordinary speech, including several requests at the same time.

Grok has become incredibly robust over the past few quarters, and this new ability that Tesla has included with its Summer Update is perhaps the clearest sign of just how capable it has become.

You can issue many commands to Grok at once, and each will be taken care of: anything from headlight control to climate adjustments to mirror folding can now all be taken care of with a simple sentence spoken toward Grok:

Here’s another example I used in my Model Y:

Tesla’s official Release Notes list the core powers of Grok’s new capabilities: Grok can place phone calls from a paired phone, search a streaming service and queue music, adjust climate, and search the Controls panel. Drivers can also ask it questions about the vehicle or the latest features included in a recent software update.

It can also take care of driving settings, dynamics, and other relevant preferences that deal with how the car operates and handles.

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Tesla Summer Update begins rolling out: a look at the new features

It’s also more of a use case than a novelty feature. Grok was great for learning about something that was being pondered while Full Self-Driving was taking care of the major automotive responsibilities, but it did have some useful functionality when it came to navigation.

Another less-noted improvement is the swift transition that Grok has from thinking of its answer to giving you one. In the past, it would take a few seconds for Grok to truly come up with a valuable response. It now seems that it is improving, at least slightly.

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Tesla is fixing Full Self-Driving’s pothole problem

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Tesla Model Y L in a field
Credit: Tesla

Tesla Full Self-Driving is set to get a major fix with pothole avoidance, a feature that CEO Elon Musk said recently was “coming soon.” The feature has been included within the FSD v14 release notes for some time as an upcoming improvement.

Potholes come in all shapes and sizes, but one thing is universal about them, and that is the fact that every driver wants to avoid them. Driving into or over a pothole can cause tire and wheel damage, alignment issues, and even, in some more severe instances, injury to occupants or major damage to a vehicle in despair.

Tesla Cybercab uses a unique strategy for picking up the right rider

Musk said late last night in a post that pothole avoidance while utilizing the Full Self-Driving suite is “coming soon.”

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Full Self-Driving, even in its most recent and robust forms, still has its shortcomings. While the suite has performed exceptionally well with avoiding on-road obstacles like cardboard boxes, horse droppings, car parts, and other debris, it still seems to struggle with recognizing certain things.

Potholes and other abrupt changes in a road’s layout are things that FSD still tends to struggle with. Perhaps the suite’s 3D modeling is still in need of some additional data or some sort of script that will help it to avoid a potentially destructive pothole or bump in the road that would be easily recognizable by the human eye.

Musk has mentioned pothole avoidance for some time, with the initial idea coming in April 2019 when an owner first requested the feature. Musk said that Tesla would “definitely” develop pothole avoidance.

In August 2020, Musk said Tesla was in the process of labeling bumps and potholes so cars can either slow down or steer around them altogether.

Tesla to utilize micro maps for pothole-detection in future update

Avoiding major disturbances in the road is a necessary feature for Full Self-Driving to have, especially as Tesla is working toward a fully autonomous program that will eventually allow every occupant in the vehicle to sleep, work, or enjoy leisure time while traveling.

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That truly begins this week with the launch of Cybercab on Thursday.

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