The former head of Elon Musk-led Tesla Inc's (NASDAQ:TSLA) Australian unit pleaded guilty to two counts of insider trading.
What Happened: Australian corporate watchdog on Wednesday said Kurt Schlosser bought shares in a lithium producer based on information that the electric carmaker had a supply agreement with them.
Tesla did not immediately respond to Benzinga's request for comment.
The former director, who pleaded guilty at a court in Sydney, bought 86,748 shares in U.S.-based Piedmont Lithium Inc. (NASDAQ:PLL) in Sept. 2020 after being informed of details of the spodumene concentrate supply deal with Tesla, the Australian Securities and Investments Commission (ASIC) said.
Schlosser, once the agreement became public and the stock price rose, sold his Piedmont shares for a profit of roughly $28,883. He also communicated information about the deal, before becoming public, to a friend, knowing that he would be likely to invest in Piedmont shares, the watchdog said.
Meanwhile, Musk is facing a shareholder lawsuit in the Delaware Chancery Court over his executive compensation.
Price Action: In premarket trading on Wednesday, Tesla stock was adding 0.12% to $194.65, according to Benzinga Pro data.