Electric Vehicle (EV) titan Tesla (NASDAQ:TSLA) has initiated legal action against Tesla Power India Pvt. Ltd., an Indian battery manufacturer, citing trademark infringement over its similar name. Despite receiving a cease-and-desist notice in April 2022, the Indian company continued to use the name “Tesla Power” to market its offerings, Reuters reported. The lawsuit seeks monetary compensation and a permanent injunction against the company.
Tesla contends that the Indian company’s use of the name “Tesla Power” breaches its trademark rights. However, the Indian firm, which has its global headquarters in Delaware, U.S., counters that its focus lies on lead-acid batteries and has no plans to produce EV batteries or EVs.
The court has granted the Indian entity a three-week window to respond to these allegations. Tesla asserts that previous attempts to deter the Indian company from leveraging its brand name were unsuccessful, leading to the initiation of the lawsuit.
The case follows Elon Musk’s canceled visit to India and his subsequent visit to China.
Musk’s China Visit
Musk’s surprise visit to China played a crucial role in securing the regulatory approvals for rolling out its full self-driving (FSD) software in China, the world’s largest EV market. Additionally, Tesla forged a partnership with Baidu (NASDAQ:BIDU) to leverage its mapping license for data collection, facilitating the gathering of data on Chinese roadways.
Moreover, a Chinese automotive association confirmed that Tesla’s Model 3 and Y adhere to China’s rigorous data security standards.
Is Tesla a Buy, Sell, or Hold?
Tesla stock is down about 27% year-to-date, reflecting softness in EV demand, increased competition, and pressure on margins due to the ongoing price war.
Given these headwinds, Tesla stock has a Hold consensus rating based on seven Buys, 16 Holds, and nine Sell recommendations. The average TSLA stock price target of $171.99 implies about 5.08% downside potential from current levels.
