Tesla Technology Stolen to Manufacture 'Counterfeits'... US Charges Chinese and Canadian Nationals

A Chinese and a Canadian businessman have been indicted on charges of stealing Tesla's proprietary battery manufacturing technology and using it for their own business.

On the 19th (local time), the U.S. Department of Justice announced that Klaus Pflugbeil, a Canadian residing in Ningbo, China, and Xiao Yilong, a Chinese native of Ningbo, were indicted on charges including conspiracy to leak trade secrets.

[Image source=Yonhap News]

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If found guilty, they could face up to 10 years in prison.

According to the indictment, Pflugbeil and Xiao are engaged in electric vehicle battery-related technology business in China. They are accused of starting their business in China in 2020 by securing proprietary technology from a U.S. electric vehicle company and promoting themselves as a replacement for that company.

They worked at a Canadian battery-related company acquired by a U.S. firm in 2019. Although the prosecution did not mention the U.S. company's name in the complaint, the Associated Press presumed it to be Tesla.

They stole blueprints and other materials of Tesla's exclusive technology to use in their own business, established a business in China in 2020, and created an assembly line utilizing the technology. They also expanded their business to Canada, Germany, Brazil, and other countries.

The Associated Press reported that the prosecution arrested Pflugbeil but has not secured custody of Xiao.

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