Delhi High Court extends bar on Tesla Power India’s use of ‘Tesla’ branding

New Delhi: The Delhi High Court has directed that an earlier undertaking provided by the CEO of Tesla Power India, stating the company will not manufacture or market electric vehicles (EVs) or use the word “Tesla” or any deceptively similar branding, shall remain in force until Tesla Inc’s trademark infringement suit is fully decided. The order was passed by Justice Tejas Karia, with a detailed judgment awaited, according to Bar & Bench.

Tesla approached the Court in May 2024, objecting to Tesla Power India’s use of the TESLA trademark and its public announcement that it intended to enter the EV market. The Court was informed that the Indian entity had placed advertisements in newspapers promoting the plan.

Musk’s Tesla told the Court that a cease-and-desist notice had been issued in April 2022 to both Tesla Power India and Tesla Power USA, but the companies continued to advertise and market products using the Tesla name.

During the first hearing, the proprietor of Tesla Power India appeared before the Court and undertook that the company had no intention of manufacturing EVs and would not market electric vehicles of other entities under the trademark or tradename ‘TESLA POWER USA’ or any other branding deceptively similar to ‘TESLA’.

However, in later hearings, Tesla Inc alleged that the Indian entity had begun manufacturing e-scooters under the Tesla name.

On May 28 last year, the Court observed,

"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."

The matter was then referred to mediation, which did not succeed, and the Court resumed hearing the case on merits.