The Delhi High Court has decided to move forward with Tesla Inc.'s trademark infringement case against Tesla Power India, as mediation efforts have failed.

The Court underscored the importance of protecting intellectual property rights in light of the allegations.

Tesla Inc. first approached the Delhi High Court in May 2024, challenging Tesla Power India’s use of the ‘TESLA’ trademark. The dispute arose after Tesla Power India advertised plans to enter the electric vehicle (EV) market, prompting Tesla Inc. to claim trademark infringement.

According to Tesla Inc., the Indian company published newspaper advertisements announcing its EV market entry, despite prior objections.

Tesla Inc. stated that it had issued a cease-and-desist notice to Tesla Power India and its associate, Tesla Power USA, in April 2022, followed by multiple communications until March 2023. However, the defendants allegedly continued using the ‘TESLA’ trademark in their marketing efforts.

During an initial court hearing, the proprietor of Tesla Power India appeared before the court and assured that they had no plans to manufacture EVs or market other entities’ EVs under the ‘TESLA POWER USA’ name or any similar brand.

Despite this assurance, Tesla Inc. later alleged that Tesla Power India had begun manufacturing e-scooters under the Tesla brand name, contradicting its previous commitment.

In response, the Court, on May 28 last year, directed the defendants to submit an affidavit detailing the EVs sold, dealer names, launch dates, sales data, and stock availability. The affidavit was to be placed on record before the next hearing.

Following this, the case was referred to mediation. However, with mediation failing to resolve the dispute, Tesla Inc. initially sought an early hearing but later withdrew the request. Acknowledging the unsuccessful mediation attempt, the Court has now scheduled the matter for hearing on April 15