Delhi HC restrains Tesla Power from using 'Tesla' name
What's the story
The Delhi High Court has granted interim relief to Tesla Inc., by barring Gurugram-based Tesla Power from using the "Tesla" trademark on electric vehicles (EVs) and batteries. The court directed Tesla Power to honor its earlier commitment not to manufacture or sell EVs under the Tesla brand. It also prohibited the company from advertising EVs under this name.
Court order
Tesla Power barred from using Tesla trademark
The Delhi High Court has also restrained Tesla Power from manufacturing, selling, or marketing batteries under the "Tesla" mark. The US-based automaker accused Tesla Power of misleading consumers by implying an association with its products. It argued that this was causing confusion among buyers who were mistakenly thinking that Tesla Power's automobile and inverter batteries were made by Elon Musk's company.
Dispute details
Alleged trademark infringement
Tesla Inc. claimed that Tesla Power had started making electric scooters despite previously denying plans to enter the EV space. The company is currently in the business of batteries for automobiles and inverters. The dispute was sent to mediation, but with no settlement reached, the interim directions were issued by the court. It said it would monitor compliance as the trademark case progresses.
Legal proceedings
Tesla Inc.'s 1st lawsuit in India
Tesla Inc. filed its first lawsuit in India in May 2024, alleging that Tesla Power was misleading consumers by implying an association with its EVs. The US giant argued that this created confusion just as it prepared to enter the Indian market. The court then prohibited Tesla Power from promoting or selling products bearing the Tesla name.
Compliance issues
Tesla Power's compliance and defense
On May 30, Tesla Power told the court that it had asked its partners and vendors to remove the Tesla logo from e-Ashwa electric scooters sold through a marketing partnership. However, it admitted that 699 e-Ashwa scooters with the Tesla branding had already been sold by dealers and partners. The court then directed further compliance steps and prohibited any EV-related activity using the "Tesla" mark.
Market presence
Tesla Inc.'s sales and expansion in India
Tesla Inc. opened its first showroom in India in July and sold 40 cars in October, bringing its total sales to 104 units after delivering 64 cars in September. The company now has two showrooms, one at Maker Maxity, Mumbai's Bandra Kurla Complex, and another at Worldmark 3, Aerocity, New Delhi. Despite being a nascent player in the Indian market with only Model Y SUV on sale, Tesla's pricing strategy puts it up against electric SUVs from Mercedes-Benz and BMW.