The Delhi High Court has ordered Tesla Power India to continue its ban on using the ‘Tesla’ name and entering the EV market until the trademark case is finally decided. The relief strengthens Elon Musk’s Tesla’s fight against brand misuse and protects its global trademark rights.
New Delhi: The Delhi High Court has directed that the earlier undertaking given by the CEO of Tesla Power India will remain in force till the final decision of the trademark infringement case filed by Elon Musk-owned Tesla Inc.
The Court made it clear that Tesla Power India must continue to follow its promise of not manufacturing or marketing electric vehicles (EVs) and not using the word “Tesla” or any other name or branding that is deceptively similar to it.
ALSO READ: Delhi High Court to Hear Tesla’s Trademark Case Against Indian Firm After Mediation Fails
Justice Tejas Karia passed this order while hearing the dispute between Tesla Inc and Tesla Power India. A detailed copy of the order is still awaited.
The case started in May 2024 when Tesla Inc approached the Delhi High Court after objecting to the use of the “TESLA” trademark by Tesla Power India. Tesla Inc told the Court that the Indian company had openly announced its intention to enter the EV market and had even published advertisements in newspapers regarding this move.
According to Musk’s company, this was a clear violation of its well-known and globally recognised trademark.
Tesla Inc further informed the Court that it had issued a cease-and-desist notice to Tesla Power India and its related entity, Tesla Power USA, in April 2022.
Despite this warning, the defendant company continued to advertise and sell its products using the Tesla name, which according to the plaintiff amounted to deliberate trademark infringement.
On the very first day of the hearing, the proprietor of Tesla Power India appeared before the Court and gave an assurance that the company had no intention to manufacture electric vehicles in any form.
They further undertook that they would not market electric vehicles manufactured by any other company under the tradename or trademark ‘TESLA POWER USA’ or any name that was deceptively similar to the word ‘TESLA’.
ALSO READ: Delhi High Court Bars Gensol & BluSmart from Transferring Orix’s 175 Electric Vehicles
However, in the later hearings, Musk’s Tesla alleged that Tesla Power India had gone back on its word and had started manufacturing e-scooters using the Tesla brand name, which directly contradicted the undertaking given to the Court.
In response to these allegations, on May 28 last year, the Delhi High Court observed and stated:
“In this situation, it would be appropriate if the defendants’ file an affidavit disclosing the EVs that are sold by them, as well as, the names of the dealers through which these are sold, the dates of launch, sales since launch, and the current stocks that are available with them. Affidavit will be placed on record or before the next date of hearing.”
Following this direction, the matter was referred to mediation in an attempt to resolve the dispute amicably.
However, the mediation process failed as the parties could not settle. As a result, the Court decided to proceed with hearing the case on merits.
The legal battle is being closely watched as it deals with the protection of international trademarks in India and the misuse of globally recognised brand names by local entities.
Tesla Inc has strongly maintained that the continued use of the Tesla name by Tesla Power India causes confusion among consumers and damages the brand reputation built over years.
Senior Advocate Chander M Lall, along with Advocates Nancy Roy, Raghav Malik, Prakriti Varshney, Lalit Alley and Prashant, appeared on behalf of Tesla Inc.
On the other hand, Tesla Power India was represented by Senior Advocate Sai Deepak, with Advocate Siddhant Goel and Mohit Goel from Sim & San.
ALSO READ: [BREAKING] Tesla Inc Vs Tesla Power India | Trademark Infringement Lawsuit in Delhi HC
With the Delhi High Court now ordering the continuation of the earlier undertaking by Tesla Power India, the company remains legally bound to stay away from the EV market and from using the Tesla name or any similar branding until the final disposal of the trademark infringement suit filed by Tesla Inc.
The outcome of this case will play an important role in shaping future trademark protection and brand enforcement in India.
Case Title:
Tesla Inc v. Tesla Power India
Click Here to Read Our Reports on TESLA
