The former head of Elon Musk-LED Tesla Inc‘s TSLA The Australian entity 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 car maker had a supply deal with them.

Tesla did not respond immediately gasoline ga‘s request for comment.

The former director, who pleaded guilty in a Sydney court, bought 86,748 shares in the US company Piedmont Lithium Inc. PLL in September 2020 after being briefed on details of the spodumene concentrate supply agreement with Tesla, the Australian Securities and Investments Commission (ASIC) said.

After word of the agreement broke and the stock price rose, Schlosser sold his Piedmont shares for a profit of approximately $28,883. He also shared information about the deal with a friend before it went public, knowing he was likely to invest in Piedmont stock, the watchdog said.

Meanwhile, Musk faces a shareholder Complaint in Delaware Chancery Court over his board compensation.

Price promotion: In premarket trading on Wednesday, Tesla shares were up 0.12% to $194.65 Benzinga Pro data.