Natalie Parkinson
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Tesla sued in China for trademark infringement

U.S. electric car maker Tesla Motors Inc is being sued in China for trademark infringement, a surprise development that casts a shadow over CEO Elon Musk's ambition to expand rapidly in the world's biggest auto market.

Tesla said in January that the trademark dispute between it and Chinese businessman Zhan Baosheng - long seen by analysts as a barrier to Tesla's entry into China - had been resolved. The car maker began delivering its Model S sedans to Chinese customers in April.

But Zhan, who registered the "Tesla" trademark before the U.S. company came to China, is now taking Tesla to court, demanding that it stop all sales and marketing activities in China, shut down showrooms and supercharging facilities and pay him 23.9 million yuan ($3.85 million) in compensation, his lawyer Zhu Dongxing said on Tuesday.

The Beijing Third Intermediate Court will hear the case on Aug. 5, according to a statement on the court's website. Tesla China declined comment. Zhan declined to be interviewed.

http://www.reuters.com/article/2014/07/08/tesla-motors-china-idUSL4N0PJ11U20140708