Delhi High Court Restrains Tesla Power India From Advertising Under ‘Tesla’ Brand

Court restricts Tesla Power India from advertising under ‘Tesla’ amid dispute

The Delhi High Court has issued an interim order preventing Tesla Power India from releasing promotional material for electric vehicle – related products under the ‘Tesla’ name. The restriction will remain in effect until the court delivers a final ruling in the trademark infringement case filed by Elon Musk’s Tesla Inc.

Scope of the Advertising Ban

The court has barred the Gurugram-based company from using the ‘Tesla’ mark for batteries and automotive-related systems across online and offline platforms. This includes products such as vehicle batteries, automotive UPS systems, inverters, VRLA batteries and lithium-ion batteries. The order follows an earlier assurance given by Tesla Power’s CEO that the company had no intention of entering the EV market.

Background of the Trademark Dispute

Tesla Inc approached the court last year alleging that Tesla Power’s branding practices were misleading consumers. According to the US company, buyers were confusing Tesla Power’s products with its own and had even contacted Tesla Inc with complaints, believing the brands were connected.

Tesla Power has maintained that its business is limited to lead-acid batteries for automobiles and inverters and that it does not manufacture EVs. It also stated that earlier advertisements showing the ‘Tesla’ name in connection with EVs were part of another company’s marketing activity under a strategic partnership.

Developments Leading to the Court’s Restraint Order

The dispute escalated when Tesla Inc later claimed that Tesla Power was indirectly involved in selling electric scooters under multiple sub-brands, in violation of an earlier undertaking. This prompted the court to request details of EV stock and sales from the Indian firm.

In response, Tesla Power argued that the word ‘Tesla’ is not exclusive to the American automaker and is used by various companies globally. It informed the court that it had instructed its partners to remove the branding from electric scooters and reiterated that it intended to abide by previously stated boundaries.

Case to Proceed After Failed Mediation

Since mediation efforts between the two companies did not succeed, the court is now progressing with the main trademark infringement petition. The interim advertising ban will continue until the matter is fully adjudicated.