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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.

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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.

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.

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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 launches 200mph Model S “Gold” Signature in invite-only purchase

Tesla’s final 350-unit Signature Edition closes the book on two cars that changed everything.

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Tesla has announced a super limited Signature Edition run of 250 Model S Plaid and 100 Model X Plaid units as an invite only purchase in a bid to give its original flagship vehicles a proper send-off.

When the Model S first launched in 2012, the first 1,000 units sold were “Signature” editions that required a $40,000 deposit and cost nearly $100,000 each. Those early buyers were Tesla’s first real believers. This new Signature Edition deliberately echoes that moment, bookending a 14-year run with numbered collector hardware.

Both models are finished in an exclusive Garnet Red paint not available on any current Tesla production vehicle, with gold Tesla T badges up front, a gold Plaid badge and Signature badge at the rear, and a white Alcantara interior featuring gold Plaid seat badges, gold piping, Signature-marked door sills, and a numbered dash plate. The Model S adds carbon ceramic brakes with gold calipers. Every unit ships with Tesla’s Luxe Package, bundling Full Self-Driving (Supervised), four years of Premium Service, free lifetime Supercharging, and a Signature Edition key fob. Both are priced at $159,420, a roughly $35,000 premium over standard Plaid inventory.

The discontinuation is part of a broader strategic shift. At Tesla’s Q4 2025 earnings call, Musk described the decision as “slightly sad” but necessary, saying: “It’s time to basically bring the Model S and X programs to an end with an honorable discharge, because we’re really moving into a future that is based on autonomy.”

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The Fremont factory floor that built these cars is being converted to manufacture Optimus humanoid robots, with a target of one million units annually.

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Tesla FSD in Europe vs. US: It’s not what you think

Tesla FSD is approved in the Netherlands, but the European version differs from what US drivers use.

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Tesla FSD 14.3 [Credit: TESLARATI)

On April 10, 2026, the Dutch vehicle authority RDW granted Tesla the first European type approval for Full Self-Driving Supervised, making the Netherlands the first country on the continent to authorize Tesla’s semi-autonomous system for customer use on public roads.

As Teslarati reported, the RDW approval followed 18 months of testing, more than 1.6 million kilometers driven on EU roads, 13,000 customer ride-alongs, and documentation covering over 400 compliance requirements. Tesla Europe had been running public demo drives through cities like Amsterdam and Eindhoven since early 2026, giving passengers their first experience of the system on European streets.


The European version of FSD is not the same software US drivers use. The RDW’s own statement is direct, noting that the software versions and functionalities in the US and Europe “are therefore not comparable one-to-one.” We’ve compile a table below that captures the most significant differences between US-based Tesla FSD vs. European Tesla FSD that’s based on what regulators and Tesla have publicly confirmed.

Feature FSD US FSD Europe (Netherlands)
Regulatory framework Self-certification, post-market oversight Pre-market type approval required (UN R-171 + Article 39)
Hands requirement Hands-off permitted on highway Hands must be available to take over immediately
Auto turning from stop lights Available — navigates intersections, turns, and traffic signals autonomously Available in EU build — confirmed in Amsterdam demo footage handling unprotected turns and signalized intersections
Driving modes Multiple profiles including a more aggressive “Mad Max” mode EU build is more conservative by default and errs on the side of restraint when it cannot confirm the limit
Summon Available — Smart Summon navigates parking lots to driver Status unclear — not confirmed as part of the RDW-approved feature set; urban FSD approval targeted separately for 2027
Driver monitoring Camera-based eye tracking Stricter continuous monitoring with more frequent intervention alerts
Software version FSD v14.3 EU-specific builds that must be separately validated by RDW
Geographic restriction US, Canada, China, Mexico, Australia, NZ, South Korea Netherlands only; EU-wide vote pending summer 2026
Subscription price $99/month €99/month
Full urban FSD scope Available Partial — separate urban application planned for 2027

The approval comes as Tesla is under real pressure to grow FSD subscriptions globally. Musk’s 2025 CEO compensation package, approved by shareholders, includes a milestone requiring 10 million active FSD subscriptions as one condition for his stock awards to vest. Tesla hit one million subscriptions during its Q4 2025 earnings call, which is a meaningful start, but still a long way from the target. Opening Europe as a market for subscriptions, rather than just hardware sales, directly accelerates that number.

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Tesla has said it anticipates EU-wide recognition of the Dutch approval during summer 2026, which would extend FSD access to Germany, France, and other major markets through a mutual recognition process without each country repeating the full 18-month review. That timeline is Tesla’s projection, not a confirmed regulatory outcome. As Musk acknowledged at Davos in January 2026, “We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month.”

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Tesla’s troublesome Auto Wipers get a major upgrade

Tesla has quietly deployed a major over-the-air (OTA) update across its entire fleet, implementing a new patent that could finally solve one of the most complained-about features in its vehicles: the Auto Wipers.

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One of Tesla’s most complained-about features is that of the Auto Wipers, but they have recently received a major upgrade that impacts every vehicle in the company’s fleet, a company executive confirmed.

Tesla has quietly deployed a major over-the-air (OTA) update across its entire fleet, implementing a new patent that could finally solve one of the most complained-about features in its vehicles: the Auto Wipers.

Confirmed by senior Tesla AI engineer Yun-Ta Tsai on April 10, the improvement is based on patent US 20260097742 A1. It introduces an “energy balance model” that adds a tactile, physics-driven layer to the existing camera-based system—without requiring any new hardware.

Tesla drivers have griped about auto wipers since the company ditched traditional rain sensors in favor of Tesla Vision around 2018.

Owners routinely report the wipers failing to activate in light drizzle or mist, leaving windshields streaked and visibility dangerously reduced. Just as often, they formerly blasted into high-speed mode on dry, sunny days, screeching across glass and risking scratches or premature blade wear.

This is a rare occurrence anymore, but many owners still report the feature having the wipers perform at the incorrect speed or frequency when precipitation is falling.

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Tesla has tried repeatedly to fix the problem through software alone.

Early “Deep Rain” initiatives and the 2023 Autowiper v4 update used multi-camera video and refined neural networks, with Elon Musk promising “super good” performance. The 2024.14 update added manual sensitivity boosts, and later FSD versions claimed further gains. Yet complaints persisted.

Elon Musk apologizes for Tesla’s quirky auto wipers, hints at improvements

Vision systems struggle with edge cases—glare, bugs, reflections, or faint mist—because they rely purely on visual inference rather than physical detection

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The new patent takes a different approach. The car’s computer constantly measures electrical power delivered to the wiper motor. It subtracts predictable losses—internal motor friction, linkage drag, and aerodynamic resistance—leaving only the friction force between the rubber blade and windshield glass.

Water lubricates the glass, sharply reducing friction; dry or icy surfaces increase it dramatically. This real-time “tactile” data acts as an independent check on the camera’s visual cues, instantly shutting down false triggers on dry glass and fine-tuning speed for actual rain.

The system can also detect ice and auto-activate defrost heaters, while long-term friction trends alert drivers when blades need replacing.

By fusing vision with precise motor-load physics, Tesla has created a hybrid sensor that is both elegant and cost-free. Owners have waited years for reliable auto wipers; this OTA rollout may finally deliver them.

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