Elon Musk’s Tesla Inc. (NASDAQ:TSLA) has taken legal action against an Indian battery manufacturer for allegedly violating its trademark by utilizing the name “Tesla Power” to market its products.

The lawsuit, filed in New Delhi, seeks compensation and a permanent injunction.

During a court session at the Delhi High Court this week, Tesla accused the Indian company, Tesla Power India Pvt Ltd., of persisting in promoting its products under the “Tesla Power” brand despite receiving a cease-and-desist notice in April 2022, cited Reuters.

The Indian firm contended that its primary focus is producing lead-acid batteries and denied any plans to manufacture electric vehicles.

The judge granted the Indian company three weeks to provide written responses after it presented supporting documents for its defense.

Tesla, headquartered in Delaware, alleged the Indian company was using trade names such as “Tesla Power” and “Tesla Power USA.”

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Court documents revealed that Tesla Power USA LLC, also based in Delaware, was recognized for introducing affordable batteries and had a notable presence in India.

Despite attempts to resolve the matter outside of court, Tesla opted for legal action after discovering the Indian company’s use of its brand name in 2022.

Musk canceled his scheduled visit to India on April 21 for a meeting with Prime Minister Narendra Modi and later in a post on X, Musk confirmed Tesla's crucial first quarter earnings slated for April 23 have played a role in the delay.

He subsequently visited China, making strides in deploying advanced driver assistance technology.

Tesla has shown a keen interest in India ever since the country relaxed import duties to reduce the burden of overseas automakers exporting cars into the country. 

Under India’s new rule, select electric vehicles will see a reduction in import taxes, but companies must commit at least $500 million into local manufacturing efforts and promise to get their factories running within a three-year window.

Tesla stock has gained more than 12% in the last 12 months. Investors can gain exposure to the stock via the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).

TSLA Price Action: Tesla shares are trading higher by 0.12% at $180.22 in premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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