Tesla Files Trademark Infringement Case Against Gurgaon-Based Firm in Delhi High Court

Tesla Inc., the renowned electric vehicle (EV) manufacturer, has taken legal action against Gurgaon-based battery seller Tesla Power India Pvt. Ltd. for alleged trademark infringement. In a lawsuit filed in the Delhi High Court, Tesla Inc. accuses Tesla Power of unlawfully using its trademark, ‘Tesla’.

Responding to Tesla Inc.’s plea, the Delhi High Court issued a notice on Thursday and directed Tesla Power to refrain from publishing any promotional materials featuring EV products under the Tesla trademark. The court further instructed Tesla Power to file its responses to the allegations, adjourning the case until July 22.

During the hearing, Tesla Inc. argued that Tesla Power’s use of the trademark in India was leading to consumer confusion and potentially harming its business interests. The company claimed that consumers were mistakenly purchasing Tesla Power batteries assuming they were associated with Tesla Inc., leading to complaints directed at them.

Tesla Inc.’s counsel sought urgent action against Tesla Power’s use of the Tesla trademark, citing potential damage to their brand and ongoing business operations in India. However, the court criticized Tesla Inc. for not demonstrating urgency, particularly since the trademark dispute with Tesla Power has been ongoing since 2020.

In response, Tesla Power clarified that it is not manufacturing EV batteries but rather selling lead acid batteries used in conventional vehicles and inverters. The company representative present in court stated that the advertisement featuring the Tesla trademark was related to another company, e-Ashwa, with whom Tesla Power has a strategic partnership.

Tesla Power emphasized that it has been in business since 2020 and has amassed 1 million customers in India. The court acknowledged Tesla Power’s right to present its case and emphasized that the company cannot be shut down abruptly.

The legal battle between Tesla Inc. and Tesla Power comes amidst speculation about Tesla’s plans for significant investments in India, including the establishment of a manufacturing plant and battery ecosystem. Reports suggest that Tesla is considering investing nearly $30 billion in India over the next five years, in line with the Indian government’s new EV policy introduced on March 15.

Under this policy, companies like Tesla must commit to investing at least ₹4150 crore (about $500 million) and establish a manufacturing facility in India to benefit from tax incentives. They are also required to source at least 25% of their components locally.

As the legal proceedings unfold, the outcome of the case will be closely watched by industry observers and stakeholders in the EV sector in India.

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