Tesla Trademark Dispute: Gurgaon Firm to Remove Tesla Logo from E-scooters

Tesla Power partners and vendors sold around 699 e-scooters with the Tesla trademark

Tesla Power Pvt. Ltd, the Gurgaon-based company, has directed its vendors to remove the Tesla logo from their e-scooters. They took this action after a Delhi high court order that prohibited the sale and promotion of products linked to the Tesla trademark.

In a trademark dispute hearing with American EV giant Tesla Inc., the Indian company notified the court that it had no plans to sell its e-scooters under the Tesla trademark.

The Indian company reported that its partners and dealers had sold around 699 e-scooters with the Tesla trademark. e-Ashwa, a partner company of Tesla Power, primarily handled the sale of these e-scooters.

The court declared that Tesla Power must take additional measures to fulfil its commitment. Moreover, it should abstain from conducting any EV business using the Tesla trademark.

Tesla Inc. accused Tesla Power of selling e-scooters with the Tesla logo (Representative Image: Unsplash)

Trademark Infringement

Tesla Inc. accused Tesla Power of selling e-scooters with the Tesla logo despite giving a court undertaking that it would refrain from selling anything related to EVs. Tesla Inc. asserted that the Indian company had breached the court’s order.

Justice Anish Dayal’s bench on May 28th requested an affidavit outlining the number of e-scooters sold, current stock availability, and dealers’ names. In response to Tesla Inc.’s plea, the court served a notice and prohibited Tesla Power from releasing any ads showcasing EV products bearing a trademark resembling Tesla’s.

The American EV giant contended that Tesla Power’s use of the trademark in India was leading to consumer confusion and could damage its business interests.

Also, it alleged that Tesla Power marketed itself as an EV company, apart from bearing the same trademark. It claimed that consumers were mistakenly purchasing Tesla Power batteries, assuming they were affiliated with the US company.

Tesla Power doesn't manufacture EV batteries, unlike Tesla Inc. (Representative Image: Unsplash)
(Representative Image: Unsplash)

Court’s Decision on Tesla Power

The high court condemned Tesla Inc., remarking that it lacked urgency. That’s because the EV giant has been in communication with Tesla Power regarding the trademark dispute since 2020. The court noted that Tesla Power had been in business for four years and had the right to present its case.

According to Tesla Power, it didn’t manufacture EV batteries, unlike Tesla Inc. Rather, it sold lead-acid batteries used in conventional vehicles and inverters. During the prior hearing, its chairman, Kavinder Khurana, stated that the company had no intentions of entering the EV market.

The advertisement featuring the Tesla trademark was associated with e-Ashwa. It is a company with whom Tesla Power collaborated to sell branded products. According to a company’s representative, Tesla Power, operational since 2020, has a customer base exceeding one million in India. Thus, a sudden closedown of the company will affect a lot of clients.