The Delhi High Court has granted relief to Tesla Power India Pvt. Ltd.’s global namesake, Tesla, Inc., by extending a prior undertaking restraining the Indian company from using the “TESLA” mark — or any deceptively similar variation — in connection with the manufacture, marketing or sale of electric vehicles (EVs) or related products until the main trademark-infringement suit is finally disposed of. The Court concluded that the impugned marks predominantly featured the word “TESLA,” and that the similarity between the marks, the goods marketed, and the channels of trade collectively created a “triple identity,” justifying interim injunctive relief.
Tesla, Inc. had filed the suit in 2024 after alleging trademark infringement: Tesla Power India had adopted brand names such as “TESLA POWER,” “TESLA POWER USA” and used associated logos, domain names and marketing materials that, according to Tesla, would likely mislead consumers into believing there was an association between the two entities. These allegations gained urgency after Tesla Power India reportedly published advertisements indicating its intention to enter the EV market — despite having earlier given an undertaking that it would neither manufacture EVs nor use “TESLA” branding for such products.
In its defense, Tesla Power India argued that it limited its operations to lead-acid or other batteries, inverters, UPS systems, and asserted it did not intend to enter the EV market. It further contended that the word “TESLA” had become widely used by third parties, and that Tesla, Inc. had not demonstrated exclusive rights over the mark for all goods covered in its suit. The company also highlighted that earlier representations had been made in papers filed before the Court indicating no EV business.
After hearing both sides, the Court accepted that Tesla, Inc. had a prior registration of the “TESLA” mark and that it enjoyed substantial global recognition and goodwill. The use by Tesla Power India of “TESLA”-dominant marks for products allied to batteries, automotive electrical systems, inverters and potentially EV-related goods created a strong case of likely confusion among consumers. The Court held that addition of descriptive suffixes like “POWER” or “USA” did not suffice to distinguish the marks. A consumer of average intelligence, particularly one with imperfect recollection, would likely assume that products bearing the contested marks were associated with Tesla, Inc.
Accordingly, the interim order — originally based on a prior undertaking by Tesla Power India — was continued in force. The Court barred Tesla Power India from manufacturing, marketing, advertising, selling or offering for sale any products under the contested marks, whether in physical or online media, including e-commerce platforms. This prohibition extends to lead-acid batteries, VRLA batteries, lithium-ion batteries, inverters, automotive UPS systems, and any battery or EV-related products. The Court’s decision ensures that until the final adjudication of the trademark suit, Tesla Power India cannot use branding that is substantially similar to that of Tesla, Inc.
This order reaffirms that in trademark disputes involving globally recognized marks, courts may exercise stringent interim protection when there is a prima facie case of infringement, goods are similar, and the likelihood of market confusion is high.
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