Tesla vs Tesla Power: MD Khurana confident about mediation, firm on trademark ownership

New Delhi: After being dragged to court by Elon Musk's electric vehicle giant over the use of the 'Tesla' trademark, Gurugram-based company Tesla Power India Pvt. Ltd is confident about settling the trademark infringement dispute with the American giant through mediation.

Kavinder Khurana, managing director of Tesla Power, in an interaction with Mint, stated that his company is confident it can mediate with Tesla Inc. If mediation fails, they are prepared to fight the legal battle with the American EV giant and are confident they will not lose the Tesla trademark.

“We are confident that we will be able to mediate and settle the matter through mediation. Our intention is to resolve the matter, which is why we voluntarily surrendered in court on the first day and gave an undertaking that we will not engage in the EV business with the Tesla trademark," he said.

Also read | Delhi High Court sends Tesla vs. Tesla Power trademark case to mediation

Regarding the possibility of failed mediation and concerns about losing the trademark, Khurana stated that they trust the court not to take away the Tesla trademark from them. He emphasized they are not afraid to fight this battle against Tesla.

“We believe that the courts in India are fair in their decisions. If, somehow, an honorable court decides that we cannot use it, we will respect that decision. We have a business in India, and we will explore remedies to address that situation. But right now, we are confident that the honourable court will not instruct us to stop using this brand name or trademark because it is our identity," he said.

“I have obtained all the necessary approvals and paid over ₹60 crore in taxes to the Indian government, including goods and services tax (GST). We have fulfilled all our tax obligations. Why should I be scared?” Khurana said.

According to Khurana, the legal suit has not impacted the business of the company, and they remain profitable. 

Mediation with Tesla Inc.

However, Khurana insists that Tesla should directly participate in the mediation process without relying on third parties like law firms. He expresses concern that if third parties involved in the mediation lack the intent to mediate and settle, it could complicate reaching a resolution. Therefore, Tesla Power plans to request Tesla Inc. to send its own representative to the mediation proceedings. Khurana notes that Tesla Inc. has not directly contacted them so far.

Khurana further expressed skepticism that only their company is targeted by Tesla when there are numerous companies registered in India with the Tesla trademark. He pointed out that Tesla Inc. was aware of other companies using 'Tesla' without objection when they applied for their trademark in India.

"When Tesla Inc. applied for their trademark in India, they were aware that other companies, including ours, were already using 'Tesla' without objection. It seems they've chosen this moment, just as we're on the verge of becoming profitable. Until now, we've been incurring losses to grow our business legally under the Tesla name. It's puzzling why they've singled us out now," he added.

When asked about why he chose to name his company Tesla, Khurana explained that the word "TESLA" originates from the surname of the renowned scientist Nikola Tesla, not invented by Tesla Inc. or  Elon Musk. He mentioned that Musk chose this name as a tribute to Nikola Tesla. Khurana pointed out that there are numerous companies worldwide using the name, including 300 in the US, 700 globally, and 14 in India.

“We obtained approval for Tesla Power USA LLC from the government of Delaware, USA, and similarly established Tesla Power USA MENA LLC in Dubai, UAE. In India, we received approval for Tesla Power India Pvt. Ltd from the Ministry of Corporate Affairs. Additionally, we obtained a No Objection Certificate from the Trademark Registry in India and secured worldwide copyright for our logo design. Leveraging these approvals, we have extensively advertised our brand name and copyrighted logo across multiple countries.”

Also read | Tesla vs Tesla Power: Gurgaon company removes logo from e-scooters

He also notes that their logo is distinct and bears no similarity to any trademark owned by Tesla Inc., and Tesla Power has invested significantly, spending crores of rupees on advertising campaigns to promote their brand and trademark, ensuring widespread recognition among the public.

Tesla Inc., co-founded by Elon Musk, filed a lawsuit against Tesla Power on 2 May, alleging trademark infringement and consumer confusion. Tesla Inc. accused the Gurugram-based company of misleading consumers by implying an association with its electric vehicles (EVs), which could potentially damage its reputation as it prepared to enter India.

Tesla Power EV ads

In response, the High Court restrained Tesla Power from publishing promotional advertisements featuring EV products under the Tesla trademark, following Tesla Inc.'s plea.

Tesla Inc. alleged in their plea to the Delhi court that Tesla Power not only used a similar trademark but also advertised itself as an EV company in newspapers. Despite undertaking on 2 May to refrain from selling anything related to EVs, Tesla Power continued to sell e-scooters bearing the Tesla logo, which Tesla Inc. claimed violated the court's order. The American company reiterated in subsequent hearings that Tesla Power's e-scooters were still available for purchase on IndiaMart, contrary to the court's directives.

Tesla Power argued in response that its primary business was supplying lead-acid batteries for applications such as automobiles, inverters, and UPS systems, and that it was not involved in manufacturing EVs. The company said advertisements featuring the Tesla name were part of a marketing alliance with another EV manufacturer, E-Ashwa, and that it had no intention of producing or marketing EVs under its own brand.

Regarding the sale of e-scooters, Tesla Power acknowledged that its partners and dealers had sold 700 units, totaling around ₹5 crore, bearing the Tesla trademark. The sales were primarily conducted by their partner company, E-Ashwa.

Khurana informed Mint that they had completely terminated their alliance with E-Ashwa due to the court's directive prohibiting any involvement in the EV business.

"As of May 2nd, we ceased all EV-related operations and terminated all engagements with E-Ashwa. Termination notices have been issued, and we are currently settling accounts and inventory. We have instructed dealers to remove Tesla Power USA stickers from remaining inventory; most stickers have already been removed, though a few may still remain. While we cannot guarantee 100% completion immediately, we are actively working to comply with the court's orders. Additionally, we have already emailed IndiaMart to remove the product," he said.

Tesla Power, operational since 2020 primarily in India, focuses on lead-acid batteries for two-wheelers and four-wheelers, inverters, UPS systems, and also offers alkaline water purifiers and engine lubricants. It serves over a million customers, collaborates with 500 plus channel partners, and operates through 5,000 plus dealers, according to the company. Since inception, Tesla Power has conducted business exceeding ₹250 Crore. Apart from India, Tesla Power operates in 12 other countries across the Middle East, Asia, and Africa.