Mediation fails in Tesla Inc.’s trademark battle with Tesla Power India

The mediation efforts between Elon Musk’s Tesla Inc. and Gurugram-based Tesla Power India Pvt Ltd to resolve their trademark dispute have failed, the two parties informed a Delhi court on Wednesday, seeking an urgent hearing.

The single bench of Justice Saurabh Banerjee will hear Tesla Inc.’s plea on April 15.

In May 2024, Tesla Inc. filed its first lawsuit in India, accusing Tesla Power India of trademark infringement and misleading consumers by implying an association with its electric vehicles. Tesla Inc. stated that this confusion among customers could harm its reputation as it looked to enter the Indian market. The court then prohibited Tesla Power from promoting and selling products bearing the Tesla trademark.

On 30 May, Tesla Power told the court it had instructed its partners and vendors to remove the ‘Tesla’ logo from electric scooters made by e-Ashwa – with which it had a marketing tie-up – to comply with the 2 May order. On 4 June, the court referred the case for mediation after both companies agreed to try and resolve their issues.

Also read | Delhi High Court to hear Tesla trademark dispute next in April 2025 as mediation continues

Tesla Power said it had no intention of manufacturing and marketing electric scooters under the Tesla brand. It added, however, that 699 e-Ashwa scooters bearing the Tesla trademark had already been sold by its partners and dealers. The court told Tesla Power to take additional steps to comply with its orders and refrain from engaging in any electric-vehicle business using the Tesla trademark.

Tesla Inc. told the court that Tesla Power was still selling e-scooters with the Tesla logo, despite agreeing not to, and argued that this constituted a violation of the court’s order. It claimed Tesla Power not only had a similar trademark but was also advertising itself as an EV company in newspapers, misleading consumers. It said customers had mistakenly purchased Tesla Power batteries in the belief that they were associated with the US company, and had sent complaints to Tesla Inc.

And read | Mint Explainer: How will Tesla’s first lawsuit in India affect trademark disputes in the EV sector?

In its defence, Tesla Power argued that its primary business was supplying lead-acid batteries for various applications, including automobiles, inverters and UPS systems, and that it did not manufacture electric vehicles. It said advertisements featuring the Tesla name were part of a marketing alliance with e-Ashwa, and that it had no plans to produce or market EVs under its own brand.