Former Tesla Australia director pleads guilty to insider trading on lithium deal
Image Source: thewest.com.au
A former Tesla director has admitted to insider trading after gaining over $30,000 from buying shares of a lithium business 12 days before the company announced a significant contract with Tesla.
A former executive of Tesla’s Australian unit admitted guilty to two occasions of insider trading based on a supply agreement Tesla signed with Piedmont Lithium in 2020.
Kurt Schlosser purchased 86,748 shares of U.S.-based Piedmont in September 2020, according to ASIC.
The ASIC claimed that once the deal was publicly disclosed and the share price increased, Schlosser sold his Piedmont stocks for a profit of about $28,883.
According to the watchdog, Schlosser also disclosed the information to a friend who was most likely to invest in the company.
Piedmont Lithium announced in September 2020 that it has signed a legally binding five-year contract to provide Tesla with a third of its anticipated 160,000 tonnes per year
The company’s share price increased six times following the deal.
Former Tesla Director has not yet received a punishment and will show up in court on December 16 in Sydney District Court.
he maximum punishment for insider trading, according to ASIC, is 15 years behind bars.