Kurt Schlosser, the former director Tesla’s (NASDAQ:TSLA) Australian operations, pled guilty to two counts of insider trading on Friday, March 17. According to a Tuesday press release, Schlosser was sentenced to two years and six months in prison. However, Australian regulators confirmed he would be released immediately on the condition of good behavior.
News of this development hasn’t affected TSLA stock. However, investors should definitely pay attention.
What’s Happening With TSLA Stock
TSLA stock closed Tuesday trading higher by 7.8%, largely on news that Moody’s has removed its junk credit rating. Its analysts have now upgraded the stock to a “Baa3” rating, restoring it to blue-chip status.
Schlosser, the former director of Australian operations, purchased shares of Piedmont Lithium (NASDAQ:PLL) after learning that Tesla planned to enter into a partnership with the miner. As Markets Insider reported:
“While he was an executive at Tesla Australia, Schlosser learned that Tesla planned to enter into an agreement with Piedmont Lithium and bought up 86,478 shares of Piedmont Lithium in two transactions, ASIC said. He later sold the shares after Tesla announced the deal and earned about $28,883 off the stocks, the watchdog said. The executive also advised a friend to buy shares of the mining company ahead of the announcement, according to the press release.”
The outlet also noted that Schlosser has forfeited all profits he made from these transactions. He also will not be able to serve in an executive role for the next five years.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.