Tesla vs Tesla: Delhi High Court Grants Initial Relief to Elon Musk’s EV Company Against Gurugram’s Tesla Power

In a landmark legal milestone, the Delhi High Court awarded first relief to Tesla Inc., the well-known US-based electric vehicle (EV) maker led by Elon Musk, in its trademark infringement case with Gurugram-based Tesla Power. The court’s decision responds to Tesla Inc.’s worries about the sale of e-scooters branded with “Tesla Power,” which the firm claimed was confusing consumers and damaging its economic interests.

Tesla Inc. filed the action, stating that Tesla Power’s use of the “Tesla” trademark misled consumers into assuming there was a connection between the companies. The court has now ordered Tesla Power to stop manufacturing, selling, and marketing any electric vehicles under the “Tesla Power” brand.

Tesla Power, which specializes in inverter batteries, has previously promised the court that it would not sell EVs. However, Tesla Inc. alleged that “Tesla Power”-branded e-scooters were still available in the market, breaking the Gurugram company’s guarantee.

In reaction to the allegations, Tesla Power announced that all vendors had been directed to remove the “Tesla Power” branding from e-scooters. The firm explained that the selling of these e-scooters was part of a marketing collaboration with another manufacturer, e-Ashwa, and did not represent its debut into the EV industry.

The Delhi High Court ordered Tesla Power to provide an affidavit documenting the stocks and sales of their e-scooters, including dealer names, dates of introduction, and current inventory availability. This step is critical for assuring compliance with the court order and addressing Tesla Inc.’s concerns.

During the court hearings, it was revealed that Tesla Power’s partners and dealers had sold roughly 699 e-scooters using the “Tesla” trademark. Despite this, the court highlighted that Tesla Power must take “all and further steps” to comply with its assurance and refrain from operating any EV business using the Tesla name.

The case, which is scheduled to be heard again on July 3, emphasizes the necessity of trademark protection in the fast expanding EV business. Legal experts believe the outcome will set important precedents for intellectual property (IP) legislation, influencing licensing negotiations and technological co-referencing in the sector.

Tesla Power’s chairman, Kavinder Khurana, personally pleaded in court, claiming that his company had no ambitions to manufacture EVs and that its primary business was supplying lead-acid batteries for conventional vehicles and inverters. He further stated that the contentious commercial incorporating the Tesla trademark was connected to e-Ashwa, with whom Tesla Power has a strategic cooperation.

As the case develops, it emphasizes the vital need for explicit and enforceable intellectual property rights to avoid consumer confusion and safeguard company interests in the competitive EV market.