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Man who stole Tesla trade secrets pleads guilty

Credit: Tesla Inc.

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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.

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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.”

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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.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Verizon, AT&T and T-Mobile are trying to shut Starlink out before FCC vote

AT&T, Verizon and T-Mobile want 290 MHz cut from an FCC satellite plan before Thursday.

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Starlink D2D direct to device vs Verizon, AT&T (Concept render by Grok)

AT&T, Verizon and T-Mobile are asking the Federal Communications Commission to pull nearly 300 MHz of spectrum out of a proposal that would let satellite companies like SpaceX offer cell service directly to ordinary phones. The request lands one day before the agency votes on it.

The FCC will vote Thursday, October 29, on a notice of proposed rulemaking that would make an additional 482 MHz available for direct to device service, expanding the number of eligible bands from five to 13, according to the FCC fact sheet. It would also scrap the rule requiring a satellite operator to lease spectrum from carriers, replacing it with a certification that the operator has coexistence agreements in place or holds the terrestrial license itself.

That second path matters for SpaceX. As Teslarati reported earlier this month, SpaceX agreed to buy Grain Management’s nationwide 800 MHz portfolio to turn Starlink Mobile into a full US carrier, adding to the spectrum it already bought from EchoStar.

The carriers want two bands removed, 2.5 GHz and 3.45 GHz, which make up 290 MHz of the 482 MHz on the table. Through industry group CTIA, they argued that about 300 million users depend on those bands and that satellite operations in them are not technically feasible. T-Mobile, which calls 2.5 GHz the foundation of its Ultra Capacity 5G network, said in its own filing that satellite interference could wipe out up to 96% of a cell site’s uplink coverage area and cut uplink speeds by 88% to 99%.

Executives from all three carriers met with FCC staff on October 20, and T-Mobile CEO Srini Gopalan met separately with FCC Chairman Brendan Carr. T-Mobile’s role stands out because it is still SpaceX’s US launch partner for Starlink Mobile. The three carriers have also teamed up on their own satellite joint venture to pool spectrum, a move widely seen as a response to Starlink.

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SpaceX is asking for the opposite. In an October 23 filing after meetings with FCC staff and commissioners’ offices, the company asked regulators to add the 902 to 928 MHz band to the proposal. “Doing so now saves time later,” SpaceX wrote. The company also asked the FCC to modernize interference rules and align satellite deployment requirements with those for terrestrial cell networks, saying the goal is to let satellite and ground networks work together so Americans stay connected wherever they are.

The carriers have not been shy about how they view SpaceX as a competitor. On Verizon’s third quarter earnings call Monday, its chief executive said Starlink Mobile “just can’t compete with a terrestrial network” and estimated SpaceX would need four to six years and $300 billion to $500 billion to build a full US carrier network.

Thursday’s vote will not settle which bands survive. Adopting the notice opens a public comment period, with final rules to come later in the proceeding. The FCC already considered and rejected 2.5 GHz for satellite coverage once, in 2024. SpaceX also is not the only satellite player watching: the FCC approved Amazon’s $11.6 billion acquisition of Globalstar on October 27, giving its planned direct to device fleet its own mobile satellite spectrum.

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Tesla Semi catches fire in California: what we know

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Credit: KTVU

A Tesla Semi caught fire in Hayward, California, which caused both directions of traffic to shut down for hours before being completely reopened early on Wednesday, the California Highway Patrol said.

The fire occurred just after 5:30 local time in Hayward on Tuesday, as the Semi caught fire in the southbound lanes of I-880 before CHP officials made the decision to shut down both lanes of traffic due to potential risks from hazardous chemical smoke.

There were no injuries reported.

The cause of the fire is currently unknown, as neither Tesla nor the CHP have not determined a cause.

However, some images taken before the Semi was completely destroyed by the fire seem to indicate this might have been an older unit, as it appears to be one of the designs that Tesla shipped as part of its pilot program, before revising it and starting mass production just a month ago.

At the time of publication, CHP had not returned our request for a comment for additional details, including the Semi involved and any potential collaboration on an investigation between the CHP and Tesla. We will update this story when we hear back from them.

The southbound lanes were reopened at 3:30 a.m. on Wednesday, with the northbound lanes opening last night a few hours after the fire began. The CHP did state that the lithium batteries were “incredibly difficult to extinguish,” according to NBC Bay Area.

The truck’s driver said that the Semi caught fire, but he did not have an explanation.

An estimated 5,000 to 7,000 semi-truck and large commercial vehicle fires occur on U.S. roadways every year.

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Tesla’s ‘Emergency Drive Away’ function gets its first use in the real world

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Credit: Tesla

Tesla’s launch of the “Emergency Drive Away” function a few months back offered owners a safe option to evacuate an area if they were in reasonable danger. The function finally got its first use in the real world, but it appears it was by mistake.

A video shared by u/Joshalander in the r/TeslaLounge subreddit recorded the instance from his vehicle and said the incident took place in Austin this past weekend during the city’s F1 Race.

“Was charging around 6 AM this past Sunday in Austin before heading to the F1 race and heard a pop. Looked over and saw the new emergency drive-away feature in action. Genuinely felt bad for the dude when he got out and realized what happened, since he looked exhausted and only seemed to half-read the prompts.”

Emergency Drive Away unlatches the Supercharger connector from the vehicle, but still causes damage to both the car and the Supercharger. Tesla has said that it will cost up to $25,000 in repairs to have everything fixed back to normal.

Additionally, the company said that if it were not used in an emergency situation, the driver of the vehicle who activated the Emergency Drive Away feature would be responsible for all repair costs.

Tesla constitutes the following situations as reasonable justifications for activating the feature:

  • You face an immediate threat to your life or personal safety.
  • You must leave the area immediately.
  • Exiting the vehicle is unsafe.
  • Unplugging the charge connector would unreasonably delay your departure or expose you to a risk to your personal safety.

After using the feature, Tesla requires the driver to schedule Service so the car can be inspected.

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