The Delhi High Court has issued an interim injunction in favour of US-based Tesla Inc., ordering Indian firm Tesla Power India to stop using the trademarks ‘Tesla Power’ or ‘Tesla Power USA’ in any capacity, including for the manufacture of electric vehicles.

While granting the injunction, the court took note of a statement from the defendants—Tesla Power India—that they did not intend to manufacture electric vehicles and would refrain from marketing EVs of other companies under the marks ‘Tesla Power’, ‘Tesla Power USA’ or any deceptively similar brand, and would not use the word ‘Tesla’ until the suit is finally decided.

The court noted that, “The above statement shall also apply to using, soliciting, providing services, advertising in any manner, including on the internet and e-commerce platform, directly or indirectly, selling or dealing in lead acid batteries for all kind of automobiles, inverters and UPS.”

Justice Tejas Karia found that Tesla Inc., led by CEO Elon Musk, had established a strong prima facie case for an interim injunction, supported by evidence of prior use, goodwill and reputation.

The order stated, “Injunction is a relief in equity, and in view of the discussion, the same is in favour of the plaintiff and against the defendants. Further, the balance of convenience also lies in favour of the plaintiff and against the defendants and grave prejudice is likely to be caused to the plaintiff if interim injunction as prayed for is not granted in favour of the plaintiff and against the defendants.”

The 52-page interim order was issued on November 24 and uploaded on the court’s website on the night of November 26.

Tesla Inc. had moved the court seeking a permanent injunction to prevent Tesla Power India from using the trademarks ‘Tesla Power’, ‘Tesla Power USA’, related logos and domain names.

Relying on its prior registrations and widespread global use of the TESLA mark, Tesla Inc. argued that the Indian company’s branding prominently featured the term ‘TESLA’, likely causing confusion among consumers.

The court also observed that Tesla Power India appeared to be capitalising on Tesla Inc.’s reputation by adopting the name ‘Tesla Power USA’.

The order noted that the name “appears to be with an intention to mislead the customers into believing that the technology that the defendants are using originated in the USA and that they are connected with the plaintiff, which is based in the USA.”