A man who was arrested in March for allegedly stealing Tesla’s trade secrets has pleaded guilty.
Klaus Pflugbeil was arrested and accused of stealing Tesla’s trade secrets, which included manufacturing techniques and proprietary information the automaker had gathered, in March. After meeting with “businessmen” who were actually undercover federal agents, Pflugbeil was arrested.
Pflugbeil, along with Yilong Shao, both of Ningbo, China, worked for Hibar Systems, a Canadian battery manufacturer that was bought out by Tesla in 2019.
Men accused of selling Tesla battery secrets arrested in undercover sting
After working for Hibar, both Pflugbeil and Shao moved to China and tried to establish their own company that looked to sell the stolen trade secrets that Tesla had discovered through its development of EVs.
Pflugbeil was arrested after the meeting with undercover agents, while Shao remained at large. Authorities are still unaware of his whereabouts.
However, Pflugbeil decided to plead guilty to conspiring to send trade secrets that belonged to a “leading U.S.-based electric vehicle company.”
U.S. Attorney for the Eastern District of New York, Breon Peace, said:
“Today, the defendant is guilty of boldly sending valuable trade secrets, detailed documents and drawings that he stole from a U.S.-based leading manufacturer of battery-powered electric vehicles to an undercover law enforcement agent expertly posing as a businessman on Long Island. Today’s guilty plea demonstrates how this Office will swiftly bring to justice those who misappropriate intellectual property belonging to American companies, to safeguard our economy and national security.”
Tesla is not explicitly mentioned in the U.S. Department of Justice’s announcement of Pflugbeil’s guilty plea. However, it can be confirmed that the company in question is Tesla based on the description of what the release calls “Victim Company-1.”
The release states:
“Victim Company-1 is a U.S.-based leading manufacturer of battery-powered electric vehicles and battery energy systems. In 2019, Victim Company-1 acquired a Canada-based manufacturer of automated, precision dispensing pumps and battery assembly lines. Prior to its purchase by Victim Company-1, the Canadian Manufacturer sold battery assembly lines to customers who manufactured alkaline and lithium-ion batteries for consumer use.”
Pflugbeil and Shao advertised their products, which Tesla owned intellectual rights to, on Google, YouTube, and LinkedIn. Messages between the two also confirmed that they stole Tesla’s ideas and property. In one message, Pflugbeil wrote to Shao that it had restructured a document used by the EV maker by saying, “[its] in a different format, so it looks very original and not like a copy.”
Pflugbeil is facing up to 10 years in prison.
I’d love to hear your thoughts on this matter. Email us at tips@teslarati.com, or you can email me directly at joey@teslarati.com. I’m also on X @KlenderJoey.
Elon Musk
Elon Musk shares big Tesla Optimus 3 production update
According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.
Tesla CEO Elon Musk has stated that production of Optimus 3 could begin this summer. Musk shared the update in his interview at the Abundance Summit.
According to Musk, Tesla is in the final stages of completing Optimus 3, which he described as one of the world’s most advanced humanoid robots.
“We’re in the final stages of completion of Optimus 3, which is really going to be by far the most advanced robot in the world. Nothing’s even close. In fact, I haven’t even seen demos of robots that are as good as Optimus 3,” Musk said.
He also set expectations on the pace of Optimus 3’s production ramp, stating that the initial volumes of the humanoid robot will likely be very low. Musk did, however, also state that high production rates for Optimus 3 should be possible in 2027.
“I think we’ll start production on Optimus 3 this summer, but very slow at first, like sort of this classic S-curve ramp of manufacturing units versus time. And then, probably reach high volume production around summer next year,” he said.
Interestingly enough, the CEO hinted that Tesla is looking to iterate on the robot quickly, potentially releasing a new Optimus design every year.
“We’ll have Optimus 4 design complete next year. We’ll try to release a new robot design every year,” Musk stated.
Tesla has already outlined broader plans for scaling Optimus production beyond its first manufacturing line. Musk previously stated that Optimus 4 will be built at Gigafactory Texas at significantly higher production volumes.
Initial production lines for the robot are expected to be located at Tesla’s Fremont Factory, where the company plans to establish a line capable of producing up to 1 million robots per year.
A larger production ramp is expected to occur at Gigafactory Texas, where Musk has previously suggested could eventually support production of up to 10 million robots per year.
“We’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk said previously.
The comments suggest that while Optimus 3 will likely begin production at Fremont, Tesla’s larger-scale manufacturing push could arrive with Optimus 4 at Gigafactory Texas.
Elon Musk
Tesla showcases Optimus humanoid robot at AWE 2026 in Shanghai
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show.
Tesla showcased its Optimus humanoid robot at the 2026 Appliance & Electronics World Expo (AWE 2026) in Shanghai. The event opened Thursday and featured several Tesla products, including the company’s humanoid robot and the Cybertruck.
The display was reported by CNEV Post, citing information from local media outlet Cailian and on-site staff at the exhibition.
Tesla’s humanoid robot was presented as part of the company’s exhibit at the Shanghai electronics show. On-site staff reportedly stated that mass production of the robot could begin by the end of 2026.
Tesla previously indicated that it plans to manufacture its humanoid robots at scale once production begins, with its initial production line in the Fremont Factory reaching up to 1 million units annually. An Optimus production line at Gigafactory Texas is expected to produce 10 million units per year.
Tesla China previously shared a teaser image on Weibo showing a pair of highly detailed robotic hands believed to belong to Optimus. The image suggests a design with finger proportions and structures that closely resemble those of a human hand.
Robotic hands are widely considered one of the most difficult engineering challenges in humanoid robotics. For a system like Optimus to perform complex real-world tasks, from factory work to household activities, the robot would require highly advanced dexterity.
Elon Musk has previously stated that Optimus has the capability to eventually become the first real-world example of a Von Neumann machine, a self-replicating system capable of building copies of itself, even on other planets. “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.
Elon Musk
Tesla Cybercab production line is targeting hundreds of vehicles weekly: report
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
Tesla is reportedly designing its Cybercab production line to manufacture hundreds of the autonomous vehicles each week once mass production begins. The effort is underway at Gigafactory Texas in Austin as the company prepares to start building the Robotaxi at scale.
The details were reported by The Wall Street Journal, citing people reportedly familiar with the matter.
According to the report, Tesla has been adding staff and installing new equipment at its Austin factory as it prepares to begin Cybercab production.
People reportedly familiar with Tesla’s plans stated that the company has been growing its staff and bringing in new equipment to start the mass production of the Cybercab this April.
The Cybercab is Tesla’s upcoming fully autonomous two-seat vehicle designed without a steering wheel or pedals. The vehicle is intended to operate primarily as part of Tesla’s planned Robotaxi ride-hailing network.
“There’s no fallback mechanism here. Like this car either drives itself or it does not drive,” Musk stated during Tesla’s previous earnings call.
Tesla has indicated that Cybercab production could begin as soon as April, though Elon Musk has noted that early production will likely be slow before ramping over time. Musk has stated that the Cybercab’s slow ramp is due in no small part to the fact that it is a completely new vehicle platform.
Tesla’s Cybercab is designed to work with the company’s Full Self-Driving (FSD) system and support its planned autonomous ride-hailing service. The company has suggested that the vehicle could cost under $30,000, making it one of Tesla’s most affordable models if produced at scale. Musk has confirmed in a previous X post that the vehicle will indeed be offered to regular consumers at a price below $30,000.
Musk has previously stated that Tesla could eventually produce millions of Cybercabs annually if demand and production capacity scale as planned.