Tesla Global News #8

⚙️Two individuals accused of attempting to sell Tesla's battery manufacturing and trade secrets were apprehended in an undercover operation earlier this week.

🔊Klaus Pflugbeil and Yilong Shao, both hailing from Ningbo, China, were suspected of trying to market sensitive information, including battery manufacturing techniques and other proprietary data collected by Tesla.

Pflugbeil engaged with individuals posing as "businessmen" who were actually undercover federal agents on Tuesday morning, resulting in his arrest. Shao, however, remains at large, as reported by the Associated Press.

Notably, both Pflugbeil and Shao were former employees of Hibar Systems, a Canadian battery manufacturing firm acquired by Tesla in 2019.

After relocating to China, the two individuals established a company with the intention of selling Tesla's purportedly stolen trade secrets, which the company had amassed over its years of electric vehicle development efforts.

According to Breon Peace, U.S. Attorney for the Eastern District of New York, this endeavor "resulted in significant financial losses in research and development, and the sale of products developed with the pilfered trade secrets."

Operating internationally, Pflugbeil and Shao's company expanded to include locations in Canada, Germany, and Brazil. Despite branding itself as an alternative to conventional assembly lines, the company essentially replicated Tesla's battery assembly lines using the exclusive information it had acquired.

Notably, in the U.S. Department of Justice's press release announcing Pflugbeil's arrest, Tesla is referred to simply as "Victim Company-1."

The initial contact between undercover agents and Pflugbeil and Shao occurred around September 11, 2023, during a trade show in Las Vegas:

"At the trade show, undercover agents were introduced to Shao and subsequently to Pflugbeil via email. Later, on or about November 17, 2023, Pflugbeil emailed a detailed 66-page technical documentation proposal to an undercover agent (UC-1) while UC-1 was in the Eastern District of New York. The proposal indicated that it contained 'confidential' proprietary information from [Business-1]. However, it actually contained Battery Assembly Trade Secret information belonging to Victim Company-1: several of the drawings included in Pflugbeil's proposal and sent to UC-1 were Tesla's proprietary information related to the Battery Assembly Trade Secret."

Pflugbeil and Shao attempted to disseminate Tesla's trade secrets under the guise of confidentiality, evidently placing their trust in the undercover federal agents.

Pflugbeil faces a potential sentence of up to 10 years in prison.

⚡️Tesla Cybertruck Production Ramps Up: Giga Texas Generates 1,000 Cybertrucks' Worth of 4680 Battery Cells in a Week

In a recent social media post, Tesla revealed significant progress in its Cybertruck production. According to the official Cybertruck account on X, Giga Texas achieved a noteworthy milestone by manufacturing over 1,000 Cybertrucks' worth of 4680 battery cells in just one week. This announcement was met with enthusiasm from the electric vehicle community, with many expressing optimism about the Cybertruck's production acceleration.

🔋While Tesla has previously indicated that the Cybertruck isn't heavily reliant on the company's 4680 battery cell production ramp, the all-electric pickup truck was nonetheless launched with Tesla's next-generation batteries. Consequently, one of the current limitations on Cybertruck production is the capacity of 4680 cells that Tesla can manufacture.

Tesla observers like The Limiting Factor, who closely monitor the company's battery initiatives, have noted that Giga Texas' 4680 output now stands at a run rate of 6.2 GWh per year. This represents a 24% improvement compared to the 5.0 GWh per year run rate estimated as of October 2023. It will be intriguing to see if Tesla offers insights into Giga Texas' 4680 production during its Q1 2024 earnings call.

It's anticipated that Giga Texas' battery production activities will continue to improve going forward, potentially resulting in further enhancements to the facility's 4680 battery cell output in the coming months. Even if Tesla's Cybertruck production ramp doesn't see significant improvement, Giga Texas' recent achievement with the 4680 milestone suggests that around 50,000 Cybertrucks could potentially be manufactured and delivered to customers within the next 12 months.

👑Elon Musk previously mentioned in October that Tesla aims to produce approximately 200,000 Cybertrucks annually, with the possibility of increasing production to 250,000 units by 2025 if all goes according to plan. Given Giga Texas' recent milestone in 4680 production, it seems that Tesla is making significant progress towards its Cybertruck production objectives.

Panasonic Energy has entered into a battery agreement with Subaru, focusing on the provision of cylindrical automotive lithium-ion battery cells.

The agreement underscores the commitment of both parties to addressing various societal challenges, including the pursuit of a carbon-neutral society, fostering sustainable growth within the automotive and battery industries, supporting local employment, and nurturing human resources.

In recent times, Panasonic Energy has been bolstering its lithium-ion battery cell supply chain in North America. Last month, the energy company inked a supply deal with H&T Recharge for lithium-ion battery can provisions. Additionally, it secured a supply agreement for sustainable graphite to support EV battery production in the United States.

✅ Thank you for reading this weeks Tesla Global Newsletter, if you enjoyed this weeks piece please share with your friends using the referral link below 👋

⚡️Get Connected: Why not follow us on Social Media?