Insider trading

On 15 November 2022, former Tesla Motors Australia Pty Ltd (Tesla Australia) director Kurt Schlosser pleaded guilty to two insider trading offences.

This article explores the details of the case as outlined by ASIC.


Case background

As the director of Tesla Australia, Mr Schlosser was privy to confidential information regarding an in-principle agreement between Tesla Inc in the United States and Piedmont Lithium Ltd, a company listed on the Australian Securities Exchange (ASX), for the supply of lithium to Tesla Inc.

Schlosser used this inside information to purchase 86,478 shares in Piedmont Lithium Ltd and also shared this information with a friend. After the public announcement of the agreement, Schlosser sold his shares for a profit of $28,883.53.


Potential penalties

The Australian Securities and Investments Commission (ASIC) has the power to pursue insider trading as a criminal or civil matter.

The maximum penalty for insider trading is 15 years imprisonment.



On 17 March 2023, Mr Schlosser was sentenced in the Sydney District Court following his guilty pleas to the two insider trading offences. The matter was prosecuted by the Commonwealth Director of Public Prosecutions (CDPP) after a referral from ASIC.

Mr Schlosser was sentenced to two years and six months imprisonment, to be released immediately upon entering into a recognizance, on the condition that he be of good behaviour for two years and six months.

An order was made by consent for Mr Schlosser to forfeit the profit of $28,883.53 to the Commonwealth.

As a result of his conviction, Mr Schlosser is also automatically disqualified from managing corporations for five years.


Key takeaways

ASIC and the CDPP work together to act against conduct that damages the integrity of Australia’s financial markets. This case illustrates the serious consequences of insider trading.

Nyman Gibson Miralis provides expert advice and representation in cases of alleged white collar and financial crime including insider trading.

Contact us if you require assistance.