In a significant win for Elon Musk’s Tesla Inc., the Delhi High Court has reinforced its interim order restraining Gurugram-based Tesla Power India Pvt Ltd from using the “Tesla” trademark in connection with electric vehicles (EVs). The ruling, delivered by Justice Tejas Karia, mandates that Tesla Power continue to abide by its earlier undertaking, prohibiting the manufacture, marketing, or advertising of EVs under the Tesla name or any deceptively similar branding until the final adjudication of the trademark infringement suit. This development underscores the court’s commitment to protecting global brands from local misuse, especially in India’s burgeoning EV market.
The dispute traces back to April 2022 when Tesla Inc. discovered Tesla Power’s website and advertisements promoting EVs, charging equipment, and related products under the “Tesla” mark. Tesla Inc., renowned for its electric cars and holding trademark registrations in India across classes including automobiles (Class 12), sent a cease-and-desist notice, which was ignored. In May 2024, Tesla Inc. filed the suit, alleging infringement and potential consumer confusion. Tesla Power, primarily a lead-acid battery manufacturer, denied direct EV involvement but admitted to a marketing alliance with E-Ashva for e-scooters.
On May 2, 2024, the court granted an ex-parte injunction and accepted an undertaking from Tesla Power’s CEO to refrain from using the mark for EVs during the pendency of the suit. However, Tesla Inc. later alleged violations, including sales of e-scooters, supported by investigator reports and brochures. Mediation attempts in July 2024 failed, leading to the case proceeding on merits.
Tesla Inc. argued that the unauthorized use diluted its brand reputation and misled consumers into associating the Indian firm with Musk’s company. Tesla Power countered that its operations were limited to batteries and that any EV promotions were non-infringing alliances. The court, emphasizing the prima facie case of infringement, directed compliance and ordered affidavits on sales and stock.
This interim victory bolsters Tesla Inc.’s intellectual property rights in India, where it plans to expand with factories and showrooms. For Tesla Power, the restrictions could hamper growth in the EV sector, forcing a rebrand or pivot. Legal experts note this case highlights the challenges of trademark enforcement in emerging markets, potentially setting precedents for foreign brands.
As the suit heads to trial, it remains a watched battle in IP law, with implications for consumer protection and international trade.
