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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

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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.

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.

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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 hints at Starlink integration with recent patent

“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

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Credit: Grok

Tesla hinted at a potential Starlink internet terminal integration within its vehicles in a recent patent, which describes a vehicle roof assembly with integrated radio frequency (RF) transparency.

The patent, which is Pub. No U.S. 2025/0368267 describes a new vehicle roof that is made of RF-transparent polymer materials, allowing and “facilitating clear communication with external devices and satellites.”

Tesla believes that a new vehicle roof design, comprised of different materials than the standard metallic or glass elements used in cars today, would allow the company to integrate modern vehicular technologies, “particularly those requiring radio frequency transmission and reception.

Instead of glass or metallic materials, Tesla says vehicles may benefit from high-strength polymer blends, such as Polycarbonate, Acrylonitrile Butadiene Styrene, or Acrylonitrile Styrene Acrylate.

These materials still provide ideal strength metrics for crashworthiness, stiffness for noise, vibration, and harshness control, and are compliant with head impact regulations.

They would also enable better performance with modern technologies, like internet terminals, which need an uninterrupted signal to satellites for maximum reception. Tesla writes in the patent:

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“By employing polymer blends, some examples enable RF transmission from all the modules to satellites and other communication devices both inside and outside the vehicle.”

One of the challenges Tesla seems to be aware of with this type of roof design is the fact that it will still have to enable safety and keep that at the forefront of the design. As you can see in the illustration above, Tesla plans to use four layers to increase safety and rigidity, while also combating noise and vibration.

It notes in the patent that disclosed examples still meet the safety requirements outlined in the Federal Motor Vehicle Safety Standards (FMVSS).

Starlink integrated directly into Tesla vehicles would be a considerable advantage for owners. It would come with a handful of distinct advantages.

Initially, the inclusion of Starlink would completely eliminate cellular dead zones, something that is an issue, especially in rural areas. Starlink would provide connectivity in these remote regions and would ensure uninterrupted service during road trips and off-grid adventures.

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It could also be a critical addition for Robotaxi, as it is crucial to have solid and reliable connectivity for remote monitoring and fleet management.

Starlink’s growing constellation, thanks to SpaceX’s routine and frequent launch schedule, will provide secure, stable, and reliable internet connectivity for Tesla vehicles.

SpaceX reaches incredible milestone with Starlink program

Although many owners have already mounted Starlink Mini dishes under their glass roofs for a similar experience, it may be integrated directly into Teslas in the coming years, either as an upgrade or a standard feature.

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Tesla supplements Holiday Update by sneaking in new Full Self-Driving version

It seems Tesla was waiting for the Hardware 4 rollout, as it wanted to also deploy a new Full Self-Driving version to those owners, as it appeared in the release notes for the Holiday Update last night.

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Credit: Tesla

Tesla has surprised some owners by sneaking in a new Full Self-Driving version with the wide release of the Holiday Update, which started rolling out to Hardware 4 owners on Friday night.

Tesla has issued a controlled and very slow release pattern with the Holiday Update, which rolls out with Software Version 2025.44.25.5.

For the past two weeks, as it has rolled out to Hardware 3 and older Tesla owners, the company has kept its deployment of the new Software Version relatively controlled.

It seems Tesla was waiting for the Hardware 4 rollout, as it wanted to also deploy a new Full Self-Driving version to those owners, as it appeared in the release notes for the Holiday Update last night.

Tesla Full Self-Driving v14.2.1.25 made its first appearance last night to Hardware 4 owners who are members of the Early Access Program (EAP). It appears to be a slight refinement from FSD v14.2.1, which has been out for a couple of weeks.

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Many owners welcome the new FSD version, us included, because we’ve been less than impressed with v14.2.1. We have experienced some minor regressions with v14.2.1, especially with Speed Limit recognition, Speed Profile tinkering, and parking performance.

As it stands, Full Self-Driving is still particularly impressive, but Tesla is evidently having an issue with some of the adjustments, as it is still refining some of the performance aspects of the suite. This is expected and normal with some updates, as not all of them are an improvement in all areas; we routinely see some things backtrack every once in a while.

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This new FSD version is likely to take care of those things, but it also includes all of the awesome Holiday Update features, which include:

  • Grok with Navigation Commands (Beta) – Grok will now add and edit destinations.
  • Tesla Photobooth – Take pictures inside your car using the cabin-facing camera
  • Dog Mode Live Activity – Check on your four-legged friend on your phone through periodic snapshots taken of the cabin
  • Dashcam Viewer Update – Includes new metrics, like steering wheel angle, speed, and more
  • Santa Mode – New graphics, trees, and a lock chime
  • Light Show Update – Addition of Jingle Rush light show
  • Custom Wraps and License Plates – Colorizer now allows you to customize your vehicle even further, with custom patterns, license plates, and tint
  • Navigation Improvements – Easier layout and setup
  • Supercharger Site Map – Starting at 18 pilot locations, a 3D view of the Supercharger you’re visiting will be available
  • Automatic Carpool Lane Routing – Navigation will utilize carpool lanes if enabled
  • Phone Left Behind Chime – Your car will now tell you if you left a phone inside
  • Charge Limit Per Location – Set a charge limit for each location
  • ISS Docking Simulator –  New game
  • Additional Improvements – Turn off wireless charging pad, Spotify improvements, Rainbow Rave Cave, Lock Sound TRON addition

Tesla also added two other things that were undocumented, like Charging Passport and information on USB drive storage to help with Dashcam.

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Tesla updates Cybertruck owners about key Powershare feature

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Credit: Tesla

Tesla is updating Cybertruck owners on its timeline of a massive feature that has yet to ship: Powershare with Powerwall.

Powershare is a bidirectional charging feature exclusive to Cybertruck, which allows the vehicle’s battery to act as a portable power source for homes, appliances, tools, other EVs, and more. It was announced in late 2023 as part of Tesla’s push into vehicle-to-everything energy sharing, and acting as a giant portable charger is the main advantage, as it can provide backup power during outages.

Cybertruck’s Powershare system supports both vehicle-to-load (V2L) and vehicle-to-home (V2H), making it flexible and well-rounded for a variety of applications.

However, even though the feature was promised with Cybertruck, it has yet to be shipped to vehicles. Tesla communicated with owners through email recently regarding Powershare with Powerwall, which essentially has the pickup act as an extended battery.

Powerwall discharge would be prioritized before tapping into the truck’s larger pack.

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However, Tesla is still working on getting the feature out to owners, an email said:

“We’re writing to let you know that the Powershare with Powerwall feature is still in development and is now scheduled for release in mid-2026. 

This new release date gives us additional time to design and test this feature, ensuring its ability to communicate and optimize energy sharing between your vehicle and many configurations and generations of Powerwall. We are also using this time to develop additional Powershare features that will help us continue to accelerate the world’s transition to sustainable energy.”

Owners have expressed some real disappointment in Tesla’s continuous delays in releasing the feature, as it was expected to be released by late 2024, but now has been pushed back several times to mid-2026, according to the email.

Foundation Series Cybertruck buyers paid extra, expecting the feature to be rolled out with their vehicle upon pickup.

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Cybertruck’s Lead Engineer, Wes Morrill, even commented on the holdup:

He said that “it turned out to be much harder than anticipated to make powershare work seamlessly with existing Powerwalls through existing wall connectors. Two grid-forming devices need to negotiate who will form and who will follow, depending on the state of charge of each, and they need to do this without a network and through multiple generations of hardware, and test and validate this process through rigorous certifications to ensure grid safety.”

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It’s nice to see the transparency, but it is justified for some Cybertruck owners to feel like they’ve been bait-and-switched.

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