New Delhi, November 27, 2025 – In a landmark ruling that underscores the importance of protecting established global brands in India, the Delhi High Court has granted an interim injunction in favor of Tesla Inc, the US-based electric vehicle and clean energy company, restraining an Indian firm, Tesla Power India, from using the trademarks ‘Tesla Power’ or ‘Tesla Power USA’ in any form. The court’s order, delivered by Justice Tejas Karia, is aimed at preventing consumer confusion and protecting the goodwill and reputation of Tesla Inc, whose CEO, Elon Musk, has spearheaded the company’s meteoric rise in the electric vehicle and renewable energy sectors globally.

The dispute revolves around the use of the word “Tesla” by the Indian company, Tesla Power India, which has been operating in the renewable energy and battery manufacturing segment in India. While Tesla Power India claimed that it had no plans to manufacture electric vehicles, Tesla Inc argued that the Indian company’s adoption of similar marks, particularly ‘Tesla Power USA’, could create a likelihood of confusion among consumers, especially given Tesla Inc’s prominent global presence and brand recognition.

In its 52-page order, the Delhi High Court emphasized that Tesla Inc had prima facie established its prior user rights, goodwill, and reputation, which necessitated granting the interim injunction to prevent irreparable harm. “Injunction is a relief in equity, and in view of the discussion, the same is in favour of the plaintiff and against the defendants,” the court noted. The judge further added that balance of convenience also lies in favor of the plaintiff, and that failing to grant the injunction could result in grave prejudice to Tesla Inc. The order was passed on November 24, 2025, and made publicly available on November 26 evening through the court’s website.

Tesla Inc had approached the Delhi High Court seeking a permanent injunction to restrain Tesla Power India from using the marks ‘Tesla Power’, ‘Tesla Power USA’, along with associated logos and related domain names. The US company argued that the Indian firm’s use of these marks was likely to mislead consumers into believing that Tesla Power India had a connection with Tesla Inc in the United States, which was not the case. According to Tesla Inc, the Indian company’s marks prominently feature the word “TESLA”, which is internationally associated with Tesla Inc’s electric vehicles, solar energy products, and energy storage solutions. The plaintiff contended that allowing the Indian firm to continue using these marks would dilute Tesla Inc’s brand equity and could potentially mislead customers about the origin of technology, products, and services.

While Tesla Power India had stated through its counsel that it did not intend to manufacture electric vehicles, the court noted that its use of the name ‘Tesla Power USA’ could still create an impression of association with the plaintiff. The court directed that this statement made on behalf of Tesla Power India extend to all forms of use, advertising, and services, including the internet, e-commerce platforms, and sales of lead-acid batteries, inverters, and UPS systems. In essence, the Indian company is restrained from using the word “Tesla” or any deceptively similar brand name until the final disposal of the suit, covering all potential commercial uses of the trademark within the Indian market.

The Delhi High Court’s ruling also highlighted Tesla Inc’s extensive use of its brand internationally and its prior registrations for the trademark, which form the foundation of its rights. The judgment recognized that Tesla Inc has invested heavily in building its brand and that the Indian firm’s marks appeared to be leveraging Tesla Inc’s global reputation, particularly by implying a connection with the United States through the term ‘USA’ in the brand name. The court stated, “The name ‘Tesla Power USA’ appears to be with an intention to mislead customers into believing that the technology used by the defendants originated in the USA and that they are connected with the plaintiff, which is based in the USA.”

Intellectual property experts note that this case sets a significant precedent in India, particularly for foreign companies seeking to protect their trademarks in the context of an increasingly competitive and rapidly expanding Indian market. Tesla Inc, which is known worldwide for its electric cars, energy storage solutions, and solar technology, has consistently sought to protect its trademarks in all jurisdictions where it operates or plans to operate. The Delhi High Court’s interim injunction reflects the judiciary’s willingness to uphold international brand protection laws while ensuring that domestic businesses do not exploit foreign trademarks to mislead consumers.

The case also underscores the growing importance of trademark vigilance in India. With electric mobility and renewable energy sectors witnessing rapid expansion, numerous Indian companies are entering the market, some adopting marks similar to globally recognized brands. Legal experts emphasize that such practices can lead to consumer confusion, dilute brand reputation, and potentially harm foreign investors’ confidence in India’s business environment. By granting the interim injunction, the Delhi High Court has sent a strong signal that courts will protect established brands and prevent misuse or deceptive practices.

Tesla Inc has, over the past decade, become a household name globally, particularly in the electric vehicle sector. Its brand is synonymous with innovation, technology, and sustainability, and the protection of its trademarks is integral to maintaining its market position. The interim order ensures that Tesla Inc’s intellectual property is safeguarded while allowing the company to pursue a permanent injunction through the ongoing litigation process.

The Indian company, Tesla Power India, now faces restrictions not only on the use of trademarks in EV manufacturing but also on all commercial and advertising activities that could imply association with Tesla Inc. The court’s directions cover sales, services, and promotional activities, effectively limiting Tesla Power India’s branding options until the final adjudication of the suit. The injunction emphasizes the principle that equity favors the protection of established rights, particularly when there is potential for irreparable harm or misrepresentation to consumers.

Trademark attorneys have pointed out that the Delhi High Court’s decision aligns with global practices, where courts typically grant interim injunctions in cases involving internationally recognized marks to prevent dilution and misappropriation of brand identity. This is particularly important in sectors such as electric vehicles and renewable energy, where technology transfer, innovation, and brand reputation are critical assets.

The ruling is expected to have wider implications for other domestic firms operating in India that might be using trademarks or brand names deceptively similar to well-known international brands. Observers believe that companies will now exercise greater caution in naming products or companies, particularly in high-visibility sectors such as electric vehicles, batteries, and renewable energy. This case also reinforces the importance of conducting thorough trademark searches and due diligence before adopting a brand name to ensure compliance with both domestic and international trademark laws.

In conclusion, the Delhi High Court’s interim injunction in favor of Tesla Inc is a decisive move to protect the rights and goodwill of an internationally recognized brand while preventing potential consumer confusion and commercial deception. By restraining Tesla Power India from using the marks ‘Tesla Power’ or ‘Tesla Power USA’, the court has reinforced the principle that intellectual property rights are to be respected and protected, both for domestic and foreign entities. As the legal proceedings continue toward the final disposal of the suit, Tesla Inc’s interim protection ensures that its brand, reputation, and commercial interests remain safeguarded within the Indian market.

This judgment marks an important milestone in India’s trademark jurisprudence, highlighting the judiciary’s role in balancing domestic commercial interests with the protection of internationally established brands. As India continues to attract global investment in emerging sectors like electric mobility, renewable energy, and high-tech manufacturing, the enforcement of trademark rights will remain a critical factor in maintaining investor confidence and ensuring fair market practices.