The Delhi High Court has stepped in to shield Elon Musk's Tesla Inc. in a significant trademark dispute with a Gurugram-based company. In a decisive interim order, the court has barred Tesla Power India Pvt. Ltd. from using the 'Tesla' name and logos, marking a pivotal moment as the American electric vehicle giant strengthens its foothold in the country.
Court's Interim Order and Restrictions
On Monday, a single-judge bench of Justice Tejas Karia granted interim protection to Tesla Inc. The court explicitly restrained Tesla Power from using any of the US company's registered trademarks, device marks, or logos in any form until the final resolution of the lawsuit.
The comprehensive order prohibits Tesla Power from using, soliciting, offering services, or advertising under the contested 'Tesla' mark. This ban extends to all internet and e-commerce platforms. The products covered by this restriction include batteries for all kinds of vehicles, automotive UPS systems, inverters, solar hybrid VRLA batteries, sealed maintenance-free VRLA batteries, and lithium-ion batteries.
Background of the Legal Battle
This legal confrontation began when Tesla Inc. filed its first lawsuit in India in May 2024. The company accused Tesla Power of misleading consumers by creating an impression of an association with its electric vehicles. Tesla argued this was causing confusion, especially as it was preparing for its official entry into the Indian market. Following this, the court initially prohibited Tesla Power from promoting or selling products with the Tesla name.
Subsequent developments saw Tesla Power informing the court on 30 May that it had directed its partners to remove the Tesla logo from e-Ashwa electric scooters to comply with an earlier order from 2 May. By 4 June, both parties had agreed to explore mediation. Tesla Power assured the court it had no plans to manufacture or market electric scooters under the Tesla name, though it admitted that 699 e-Ashwa scooters with Tesla branding had already been sold.
Failed Mediation and Allegations of Non-Compliance
The court's latest direction comes after mediation efforts between the two companies failed. This was despite a statement from Tesla Power in June 2024 claiming it had no intention of infringing on the EV maker's trademark.
Tesla Inc. later brought further allegations to the court, claiming that Tesla Power had continued to sell e-scooters bearing the Tesla logo despite its assurances. The US firm also stated that Tesla Power was advertising itself as an EV business in newspapers. Tesla Inc. presented evidence that customers had purchased Tesla Power batteries under the mistaken belief they were linked to the global brand, arguing this proved the use of the mark was deceptive.
In its defense, Tesla Power maintained that its core business is manufacturing and supplying lead-acid batteries for automobiles, inverters, and UPS systems, and that it does not manufacture EVs. It attributed the controversial advertisements to a marketing alliance with e-Ashwa and reiterated it has no plans to produce or sell EVs under its own brand.
Tesla's Growing Presence in India
This trademark case, filed just before Tesla's formal market entry, represents the company's first major litigation in India. Its expansion is now visibly underway. Tesla opened its first Indian showroom in July and has seen encouraging sales figures, selling 40 cars in October after delivering 64 units in September, bringing the total to 104 cars sold in the country so far.
Currently, Tesla offers only the Model Y SUV in India, positioning it in direct competition with luxury electric SUVs from Mercedes-Benz and BMW. The company has established two showrooms: one at Maker Maxity in Mumbai's Bandra Kurla Complex and the other at Worldmark 3 in Aerocity, New Delhi. The outcome of this trademark case is seen as critical for protecting the brand's identity as it navigates the competitive and complex Indian automotive market.
