The Delhi High Court has restrained Tesla Power India from using the ‘Tesla’ brand, stating the adoption or branding “appears intended to mislead customers.” The interim injunction protects Tesla Inc.’s global reputation and prevents consumer confusion.
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NEW DELHI: The Delhi High Court has issued an interim injunction stopping Tesla Power India Pvt. Ltd. from using the name Tesla or similar branding, following a trademark suit filed by US-based Tesla Inc. The order prevents the Indian company from using names such as Tesla Power and Tesla Power USA for any of its products, services or online advertising.
The ruling was delivered by Justice Tejas Karia in a 52-page order dated November 24 and made public on November 26.
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Tesla Inc. argued that the Indian company’s use of the Tesla name was likely to deceive customers into assuming an association with the globally recognized electric vehicle manufacturer.
The court concurred, stating that the adoption of the brand identity appeared intentionally misleading. The order observed that Tesla Power India’s branding:
“appears to be with an intention to mislead the customers into believing that the technology that the defendants are using originated in the USA and that they are connected with the plaintiff, which is based in the USA.”
The court found that Tesla Inc. demonstrated significant goodwill and reputation, creating a strong case for protection against brand dilution and consumer confusion.
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During the hearing, Tesla Power India said it had no intention of entering the EV sector and would not market electric vehicles using the disputed name until the case is resolved. However, the court broadened the injunction to cover all categories of goods that the company currently sells.
The order clarified:
“The above statement shall also apply to using, soliciting, providing services, advertising in any manner, including on the internet and e-commerce platform… selling or dealing in lead acid batteries for all kinds of automobiles, inverters and UPS.”
This prevents the Indian firm from using the Tesla name in connection with its batteries, UPS systems or online promotional activities.
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Justice Karia noted that failing to grant the injunction would unfairly disadvantage Tesla Inc., given the value and global recognition attached to its name.
The judge stated:
“Injunction is a relief in equity… the same is in favour of the plaintiff and against the defendants. Further, the balance of convenience also lies in favour of the plaintiff.”
The court reasoned that any continued use of the disputed branding could mislead consumers and harm Tesla Inc.’s established international market identity.
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