Today(on 2nd May),Tesla Inc. has initiated legal action against Tesla Power India Pvt. Ltd., accusing them of trademark infringement. The lawsuit, filed in the Delhi High Court, has resulted in Tesla Power being restrained from using the ‘Tesla’ brand in electric vehicle-related advertisements.
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NEW DELHI: Today(on 2nd May), Tesla Inc., a prominent player in the electric vehicle (EV) industry, has taken legal action against Gurgaon-based battery vendor Tesla Power India Pvt. Ltd. The lawsuit, lodged in the Delhi High Court, alleges that Tesla Power India has violated its established trademark ‘Tesla’.This situation arose after a court order was issued, promptly prohibiting Tesla Power from engaging in any promotional activities that utilize the Tesla brand, particularly in advertisements related to electric vehicles.
The court has issued a provisional injunction restraining Tesla Power from its advertising practices and requiring them to provide a response to the allegations made by Tesla Inc. The proceedings are scheduled to continue until July 22.
During the legal proceedings, representatives from Tesla Inc. argued vigorously, stating-
“Tesla Power’s utilization of the trademark in India is inducing consumer confusion and possibly compromising our business interests.”
They further asserted that the similarity in the trademark names and Tesla Power’s portrayal as an EV company in media advertisements led consumers to mistakenly purchase Tesla Power batteries under the assumption they were buying a Tesla Inc. product, thereby leading to a surge in complaints directed at them.
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Tesla Inc.’s legal counsel advocated for immediate legal action, underscoring the substantial harm potential confusion could cause to their brand and business operations in India. Nevertheless, the court noted Tesla Inc.’s failure to demonstrate sufficient urgency in addressing the issue, particularly in light of ongoing communications with Tesla Power regarding the trademark dispute since 2020.
In defense, Tesla Power clarified its position in the marketplace, stating-
“We are engaged in the sale of lead-acid batteries commonly utilized in traditional vehicles and inverters, as opposed to manufacturing batteries specifically designed for electric vehicles (EVs).”
A company representative, present during the hearing, pointed out that the contentious advertisement was actually for another company, e-Ashwa, with which Tesla Power has a partnership for selling branded products. The representative also highlighted that Tesla Power, established in 2020, now serves over 1 million customers across India.
During the ongoing dispute, global interest in Tesla’s activities in India remains high, especially following recent reports suggesting Tesla’s consideration of a substantial USD 30 billion investment in India. This investment aims to establish a manufacturing plant and develop a comprehensive battery ecosystem over the next five years.
On March 15, the Indian government unveiled a new electric vehicle (EV) policy aimed at facilitating the entry of major players such as Tesla into the Indian market. The policy entails tax reductions on specific electric vehicles. However, there is a notable investment stipulation: companies must pledge a minimum of Rs.4150 crore (approximately USD 500 million) and establish a manufacturing facility within three years. Furthermore, at least 25% of the components utilized in these facilities must be procured domestically.
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