Delhi High Court Protects Musk’s Trademark, Stops Indian Firm From Using ‘Tesla’ for EVs

Delhi High Court Protects Musk’s Trademark, Stops Indian Firm From Using ‘Tesla’ for EVs

Introduction

The Delhi High Court has granted interim relief to Elon Musk’s Tesla Inc. in its trademark infringement suit against Tesla Power India Pvt. Ltd., directing that the earlier undertaking given by the Indian company to not manufacture or market electric vehicles (EVs) or use the word “Tesla” or any deceptively similar mark shall continue until final disposal of the case. Justice Tejas Karia passed the order on November 24, 2025, in the matter titled Tesla Inc. v. Tesla Power India.

Factual Background

In May 2024, Tesla Inc., the US-based electric vehicle manufacturer, approached the Delhi High Court after Tesla Power India issued advertisements announcing its intention to enter the Indian EV market using the “TESLA” name and mark. Tesla Inc. alleged that Tesla Power India and its affiliate Tesla Power USA had been unlawfully using its globally recognized TESLA trademark in India to promote battery and energy products, thereby misleading consumers and diluting the brand’s distinctive identity. The plaintiff contended that despite serving a cease-and-desist notice in April 2022, the Indian entity continued using the “Tesla” name in commercial communications, prompting the filing of the infringement suit.

Procedural Background

On the first day of hearing in 2024, Tesla Power India’s proprietor appeared before the Court and gave an undertaking stating that the company had no intention to manufacture or market EVs and would not use the trademark “TESLA” or any deceptively similar mark for such products. However, Tesla Inc. later alleged non-compliance, claiming that the Indian company had begun manufacturing and marketing e-scooters under the “Tesla” brand despite its undertaking. On May 28, 2024, the Court directed the defendants to file an affidavit disclosing all details regarding the alleged EV products, including:

• Names of dealers and distributors,
• Dates of product launch,
• Sales data since launch, and
• Current stock details.

Subsequently, the matter was referred to mediation, which failed, leading the Court to resume hearing the case on merits.

Issues

1. Whether Tesla Power India’s use of the “TESLA” mark constituted trademark infringement and passing off against Tesla Inc.

2. Whether the undertaking restraining manufacture and marketing of EVs under the “Tesla” brand should continue pending trial.

Contentions of the Parties

Plaintiff (Tesla Inc.): Argued that “TESLA” is an internationally reputed trademark associated exclusively with the plaintiff’s electric vehicles and technology products. Claimed that Tesla Power India’s actions amounted to wilful infringement and brand misappropriation, intended to capitalize on the global goodwill of the “Tesla” brand. Alleged violation of the undertaking, as the defendants had resumed use of the name for e-scooters.

Defendant (Tesla Power India): Maintained that it was primarily engaged in battery-related products, not electric vehicle manufacturing. Denied violation of the undertaking and submitted that the company had no commercial link or overlap with Elon Musk’s Tesla Inc. Asserted that the two businesses operated in distinct markets and consumer segments.

Reasoning and Analysis

Justice Tejas Karia observed that the defendants had earlier undertaken not to manufacture, market, or promote EVs using the “Tesla” mark and that such undertaking was binding until the final adjudication of the dispute.

The Court emphasized the need to preserve the status quo to prevent confusion among consumers and potential dilution of the Tesla brand’s distinctiveness, especially given its established reputation in the global and Indian markets. Given the ongoing allegations of breach and the failure of mediation, the Court held that it was appropriate to continue the restraint imposed earlier to protect the plaintiff’s rights under the Trade Marks Act, 1999 until final disposal of the case.

Decision

The Delhi High Court directed that the earlier undertaking by Tesla Power India shall continue, effectively restraining the company from manufacturing or marketing EVs or using the word “TESLA” or any deceptively similar mark until final disposal of the case. The order preserves Elon Musk’s Tesla Inc.’s trademark rights in India while the substantive infringement claims remain pending before the Court.

In this case Senior Advocate Chander M Lall along with Advocates Nancy Roy, Raghav Malik, Prakriti Varshney, Lalit Alley and Prashant appeared for Tesla Inc. Meanwhile Tesla Power Indian was represented by Senior Advocate Sai Deepak with Advocate Siddhant Goel and Mohit Goel from Sim & San.