Tesla Files Lawsuit Against a Chinese Company Selling its Used Cars, Under Guise of the Manufacturer: Report

Tesla Files Lawsuit Against a Chinese Company Selling its Used Cars, Under Guise of the Manufacturer: Report

Image: Tesla

Tesla has filed a lawsuit against a Chinese company selling used cars under the guise of the manufacturer. According to the report, the case cause was an intellectual property infringement dispute.

In the modern world, the name Tesla is very popular. Although it was previously associated with the engineer, physicist, and inventor in the field of electrical and radio engineering, Nikola Tesla, in recent decades this has changed. After the founding of an electric vehicle company that was named Tesla, the widespread recognition of the name caused many to refer to it. Around the world, you can often see how various individuals and businesses use the Tesla name in order to attract customers. Although they are completely unrelated to the Texas-based Tesla, sometimes their name can be misleading, especially for those who are not very closely familiar with the company and how it works.

In early June, Tesla CEO Elon Musk expressed concern that many companies were using the manufacturer's name to grab the attention of customers. The head of the company said that Tesla will put an end to this. “Also, other companies are using the Tesla name for solar and Powerwall. Will put a stop to that,” he wrote in response to a tweet criticizing fraudulent advertising.

Now, Pandaily reports that according to the Tianyancha app, a commercial inquiry platform, Tesla China on August 26 added information about filing a lawsuit. The defendant was the Wuhou Branch of Tesla Used Car and the case cause was an intellectual property infringement dispute. The defendant is reported to be very similar to a used car operating company owned by Tesla in terms of the company name, but is operated by individuals who have absolutely no connection to Tesla.

Tesla Used Car (Guangzhou) Co., Ltd., founded in May 2021, is located in Guangzhou, Guangdong Province and is mainly engaged in retail. It is jointly owned by two individuals. The business scope of the company includes the sales, distribution, appraisal, and evaluation of used cars, motor vehicle charging sales, used car trading market operation, distributed AC charging pile sales, and more. In fact, the scope of the services offered, combined with the name of the company, can mislead even cautious buyers.

The Wuhou Branch of Tesla Used Car (Guangzhou) Co., Ltd., was established in June 2021 and is located in Chengdu, Sichuan Province. It is an enterprise mainly engaged in the wholesale industry and a branch of Tesla Used Car (Guangzhou) Co., Ltd, according to Pandaily.

Tesla sells its vehicles, including used vehicles, on a direct sales model and does not use third-party services to do so. Before used vehicles are sold to customers, they go through extensive testing and preparation procedures. The company independently places advertisements for the sale of its own website.

© 2022, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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