Ex-Tesla Australia boss faces 15 years' jail for insider trading ASX lithium shares

The country director knew of a huge supply deal before the public, and couldn't help himself.

| More on:
business man with hands handcuffed behind back

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A former head of Tesla's Australian arm has pleaded guilty to insider trading of ASX shares.

Sydney Downing Centre local court on Tuesday heard Kurt Schlosser plead guilty to one count of trading while in possession of inside information and one count of communicating inside information to an associate.

The offences related to Schlosser's knowledge back in September 2020 that Tesla Inc (NASDAQ: TSLA) had signed an in-principle agreement with Piedmont Lithium Inc (ASX: PLL) to supply the car maker with lithium.

The court heard the country director of Tesla Australia bought 86,478 shares in Piedmont on 16 September 2020 before the deal was revealed publicly.

After the supply agreement was announced to the market, Schlosser sold his stocks for a profit of $28,883.53.

The director also told the inside information about the Piedmont deal to a friend on 16 September 2020, knowing that the acquaintance would likely buy shares in the miner.

Each breach carried a maximum penalty of 15 years of imprisonment at the time of the offences.

Schlosser will appear on 16 December in the Sydney District Court for sentencing.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Share Market News

5 things to watch on the ASX 200 on Friday

A good finish to the week is expected for Aussie investors.

Read more »

A man has computer-generated images rushing through his head indicating an AI (Artificial Intelligence) concept of a communication network.
Technology Shares

ASX investors are obsessed with Nvidia shares! Here's why

The global chipmaker reported a 94% increase in annual revenue in the third quarter.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two racing cars battle to take first place on a formula one track with one tailing the the leader and looking to overtake the car.
Opinions

Down 21% in 2024. This ASX 300 stock looks like a money-making monster

Profits are expected to plunge, but the future could still be bright.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
52-Week Lows

Down 68% from highs, this ASX 200 stock just hit a 4-year low. Time to pounce?

Is this beaten down stock a buy? Let's see what one leading broker is saying.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Market News

Insider buying alert: 3 ASX 200 shares directors are snapping up right now

Directors in some of Australia's blue-chip businesses aren't shying away from the market.

Read more »