The former head of Tesla’s Australian operations Kurt Schlosser was sentenced to two years and six months’ prison after an insider trading conviction, but was instead released on a good behaviour bond for the two offences.

Schlosser was sentenced in the Sydney District Court before being released immediately upon entering into a recognisance, on the condition that he be of good behaviour for two years and six months, the Australian Securities and Investments Commission (ASIC) said in an announcement this morning.

In his role as country manager for Tesla, Schlosser was informed of a confidential agreement for ASX-listed Piedmont Lithium to supply lithium to the electric carmaker in September 2020.

Electric carmakers such as Tesla have been scouring the globe for supply deals with lithium miners, as it is a key ingredient for the batteries which power these vehicles. Piedmont shares nearly doubled after the announcement.

Schlosser purchased 86,478 shares in Piedmont Lithium based on his knowledge of the supply deal, and passed the news on to a friend. He sold the stock shortly after the announcement was made public for a profit of $28,883.53.

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The ASX was already alert to any suspicious trading. It sent a please explain notice to Piedmont ahead of the Tesla announcement, noting the big increase in the company’s share price in the days preceding the deal going public to a high of 16 cents. The stock peaked last month at $1.07.

ASIC said Schlosser had forfeited the profit he made of $28,883.53 to the Commonwealth.

“ASIC is committed to acting against conduct that damages the integrity of Australia’s financial markets. Insider trading undermines investor confidence and gives individuals an unfair advantage,” said ASIC Deputy Chair Sarah Court. “This criminal outcome demonstrates the serious consequences for trading when in possession of inside information.”