TESLA INC. V. TESLA POWER INDIA PVT. LTD.

A global EV giant battles an Indian battery maker over the use of the “Tesla” name – a test for transborder trademark rights in India.

Short Description :

Tesla Inc. filed a trademark infringement suit in the Delhi High Court against Tesla Power India Pvt. Ltd. for unauthorized use of the “Tesla” brand. The dispute revolves around allegations of brand misuse, breach of undertaking, and confusion in the EV and battery market.

Facts :

⦁ Tesla Inc. is a U.S.-based electric vehicle and clean energy company with well-known trademarks worldwide, including India.

⦁ Tesla Power India Pvt. Ltd., based in Gurugram, deals primarily in lead-acid batteries and related products.

⦁ In 2022, Tesla Inc. issued a cease-and-desist notice alleging infringement.

⦁ In May 2024, Tesla Inc. filed a suit before the Delhi High Court, seeking injunctions and damages.

⦁ Tesla Power India argued that it did not manufacture EVs and only promoted its batteries, with some tie-ups with EV makers like E-Ashwa.

⦁ Tesla Inc. later presented evidence alleging that Tesla Power India sold e-scooters under the “Tesla” branding, despite giving an undertaking not to enter the EV market.

⦁ The court directed Tesla Power India to file an affidavit with details of EV-related products, dealers, and sales.

⦁ The case was referred to the Mediation Centre in July 2024, but talks failed.

Findings (So Far) :

⦁ Tesla Inc. established that its trademark has a global transborder reputation, extending to India.

⦁ The defendant’s use of “Tesla” for batteries and scooters creates a likelihood of consumer confusion and potential passing off.

⦁ Evidence suggested that Tesla Power India breached its undertaking by promoting/selling e-scooters under the “Tesla” name.

⦁ The Court viewed this as a serious issue needing full trial.

Suggestions (Legal Significance) :

⦁ Indian courts may recognize well-known international trademarks and restrict local companies from free-riding on global goodwill.

⦁ Businesses in India must exercise caution when adopting names similar to famous marks, even if operating in different product categories.

⦁ Alternative dispute resolution (mediation) could have avoided prolonged litigation but failed due to conflicting commercial interests.

Judgment / Status :

⦁ No final judgment has been delivered yet.

⦁ The Delhi High Court has listed the case for full hearing on April 15, 2025.

⦁ Pending court decision, Tesla Power India remains under scrutiny for trademark infringement and possible contempt of undertaking.

Next Hearing Date : 15 April 2025

Court : Delhi High Court.