The Delhi High Court has granted relief to Tesla Inc., owned by Elon Musk, in its trademark infringement case against Tesla Power India. The dispute centers on the unauthorized use of the globally recognized TESLA trademark and the Indian company’s announcement of entering the electric vehicle (EV) market under the Tesla name.
Background of the Case
In May 2024, Tesla Inc. approached the Delhi High Court after Indian firm named Tesla Power India published advertisements announcing its entry into the EV sector. Tesla argued that this was a violation of its trademark rights and risked misleading consumers. The Plaintiff company emphasized that it had already issued a cease-and-desist notice in April 2022 to Tesla Power India and its counterpart Tesla Power USA, but the defendants continued to use the Tesla name in marketing campaigns.
Court’s Order
Justice Tejas Karia directed that the undertaking given earlier by Tesla Power India’s CEO—that the company would not manufacture or market EVs or use the word “Tesla” or any deceptively similar branding—shall remain in force until the final disposal of the suit. A detailed copy of the order is awaited.
Tesla’s Allegations
Tesla Inc. alleged that despite assurances, Tesla Power India began manufacturing e-scooters under the Tesla brand, contradicting its undertaking before the Court. This prompted Tesla to seek stronger judicial intervention to protect its trademark rights.
Court Proceedings
On May 28, 2024, the Court ordered Tesla Power India to file an affidavit disclosing details of its EV activities and explaining its established name in the industry.
The matter was initially referred to mediation, but the attempt failed, leading the court to resume hearings on merits. Upon arguments, the Hon’ble Delhi High Court of Delhi has restrained the Defendant i.e. Tesla Power, from using the mark Tesla in respect to the EVs.
Legal Representation
Tesla Inc. was represented by Senior Advocate Chander M. Lall, assisted by Nancy Roy, Raghav Malik, Prakriti Varshney, Lalit Alley from the law firm Lall and Sethi. Tesla Power India was represented by Senior Advocate Sai Deepak, along with Siddhant Goel and Mohit Goel from Sim & San.
Significance of the Case
This case highlights the importance of trademark protection in India’s fast-growing EV sector. Tesla Inc., a global leader in electric mobility, has consistently defended its brand against misuse worldwide. The Delhi High Court’s order reinforces the principle that well-known trademarks enjoy heightened protection under Indian law, particularly in industries where consumer confusion can directly impact credibility and market trust.