Tesla moves Delhi HC over trademark infringement by Tesla Power India

US electric vehicle maker Tesla Inc has filed a lawsuit in the Delhi High Court against Gurgaon-based Tesla Power India Pvt Ltd for infringement on its trademark, 'Tesla'. 

While seeking to restrain Tesla Power from using its trademark, senior counsel Chander Lall, appearing for Tesla Inc., argued that the local firm's use of the trademark in India was causing confusion among consumers and harming its business interests, The Economic Times reported. 

The senior counsel also submitted that complaints against Tesla Power batteries are being directed to the US firm as consumers are assuming that these are associated with Tesla Inc.

The high court issued a notice to Tesla Power in response to Tesla's plea and restrained the company from publishing any promotional advertisements featuring EV products with a similar Tesla trademark till May 22, the next date of the hearing. 

Tesla Inc. stated that consumers are mistakenly purchasing Tesla Power batteries assuming they are associated with Tesla Inc. and registering complaints with them. 

However, the court criticized Tesla Inc. saying it had not shown any urgency, especially considering that it has been in communication with Tesla Power since 2020 over the trademark dispute.

However, the HC said that Tesla Inc. had not shown any urgency in the matter as it has been communicating with Tesla Power since 2020 over the alleged illegal use of its trademark.

Tesla Power argued that it is not manufacturing EV batteries but rather selling lead-acid batteries used in conventional vehicles and inverters.

Kavinder Khurana, Chairman of Tesla Power India, who was personally present in the court, said that it would not be manufacturing or marketing its EV under the Tesla brand, but it had a partnership firm in the US, the ET reported.

He said that it had no plans to enter the EV market and clarified that the advertisement featuring the Tesla trademark was related to another company, e-Ashwa, with whom Tesla Power has a strategic partnership to sell branded products. Tesla Power has been in business since 2020 and has 1 million customers in India, he added.

Recently, Tesla CEO Elon Musk postponed his much-anticipated visit to India citing prior commitments to Tesla. 

According to reports Tesla is considering a significant investment of nearly $30 billion in India over the next five years, including the establishment of a manufacturing plant and battery ecosystem.