Why is Elon Musk's Tesla Inc. suing Gurugram-based Tesla Power India?

American EV manufacturer has lodged a complaint with the Delhi High Court against Gurugram-based Tesla Power India for violating its trademark

Tesla Inc., the American electric vehicle (EV) company owned by billionaire Elon Musk, on Thursday filed a complaint with the Delhi High Court, asserting trademark infringement by Tesla Power India, a firm in Gurugram.

In their efforts to prevent Tesla Power from utilising their trademark "Tesla", senior counsel Chander Lall, representing Tesla Inc, said the Gurugram-based company's usage of the trademark within India was not only generating confusion among consumers but also detrimentally impacting their business concerns. He further said that grievances regarding Tesla Power batteries were being forwarded to the American company, as consumers mistakenly linked them with Tesla Inc, according to a report in The Economic Times (ET).

Lall said Tesla Power had promoted itself in national newspapers as an electric vehicle (EV) company and was using the logo of the American company. He. urgently requested measures to be taken against Tesla Power's usage of the "Tesla" trademark, the report stated.

Justice Anish Dayal issued a notice to Tesla Power and prohibited it from releasing any promotional advertisements showcasing EV products with a trademark resembling Tesla Inc. until May 22, the date of the next hearing. However, the High Court noted that Tesla Inc. had not shown any sense of urgency in the case and was in communication with the Gurgaon company regarding the purported unauthorised use of its trademark since 2020.

Tesla Power contended that it does not produce EV batteries but sells lead-acid batteries used in traditional vehicles and inverters. Kavinder Khurana, chairman of Tesla Power India, said the company would not manufacture or market its EV under the Tesla brand, but it had a partnership firm in the US, said the report.

Khurana said his company had no intention to venture into the EV market and explained that the advertisement displaying the Tesla trademark was associated with another company, e-Ashwa, with whom Tesla Power has a strategic partnership for the sale of branded products.