Tesla settles Chinese trademark dispute

Tesla Motors (NASDAQ:TSLA) says that it has "completely and amicably" resolved its trademark dispute with Chinese businessman Zhan Baosheng, paving the way for its expansion into the world's largest auto market.

"Mr. Zhan has agreed to have the Chinese authorities complete the process of canceling the Tesla trademarks that he had registered or applied for, at no cost to Tesla," says the electric carmaker.

Zhan registered the "Tesla" trademark and certain domain names before the automaker came to China. Tesla said in January that the issue had been resolved, but last month, Zhan moved to bring the company to court.

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Comments (15)
  • Surf Dog
    , contributor
    Comments (830) | Send Message
    I wonder if they comped him a car?
    6 Aug 2014, 03:35 AM Reply Like
  • gofx
    , contributor
    Comments (2817) | Send Message
    Seems like a good guess to me.
    6 Aug 2014, 05:40 AM Reply Like
  • AndyMahnFL
    , contributor
    Comments (66) | Send Message
    My immediate thought as well.
    6 Aug 2014, 07:52 PM Reply Like
    , contributor
    Comments (12) | Send Message
    The settlement will probably cost Tesla almost all its 2014 Q2 non GAAP “Profit” of 0, 11 $ per share. But less that the amount its director got for theirs stock options in that quarter.
    6 Aug 2014, 03:40 AM Reply Like
  • marshgre
    , contributor
    Comments (989) | Send Message


    Re-read the news release. "No cost" generally means it didn't involve money.
    6 Aug 2014, 08:39 AM Reply Like
  • JRP3
    , contributor
    Comments (10538) | Send Message
    Obviously the Chinese government stepped in and put some "pressure" on Mr. Zhan to make this go away. So much for those who try and claim that Tesla won't get Chinese government support because the cars are imported.
    6 Aug 2014, 08:45 AM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
    the pressure is probably from Tesla's plan to open manufacturing in China. Mr. Zhan probably got a free Model S which is a fortune in China.
    6 Aug 2014, 08:59 AM Reply Like
  • JRP3
    , contributor
    Comments (10538) | Send Message
    Mr. Zhan probably got nothing.
    6 Aug 2014, 09:06 AM Reply Like
  • chickenmantesta
    , contributor
    Comments (85) | Send Message
    I totally agree. The fact that no settlement took place makes it apparent that Zhan was told by the Chinese government to drop it. They have a tendency to make people who go against their interests "disappear".
    6 Aug 2014, 12:24 PM Reply Like
  • User 22628091
    , contributor
    Comments (2) | Send Message
    so is this a good news to the stock? buy signal?
    6 Aug 2014, 09:04 AM Reply Like
  • JRP3
    , contributor
    Comments (10538) | Send Message
    In related news, China not happy with other OEM's price gouging.


    6 Aug 2014, 09:41 AM Reply Like
  • fan of the underdog
    , contributor
    Comments (852) | Send Message
    I wonder how much of that investigation was due to Tesla saying that they won't "gouge the chinese consumer" and charge a fair price? I wonder if musk knew what kind of hornet's nest he was going to stir up when he announced the chinese model S pricing back in Jan? This move would effectively halve many ICE maker's profits for the following quarters.
    6 Aug 2014, 10:11 AM Reply Like
  • Stephen Pace
    , contributor
    Comments (812) | Send Message
    @JRP3: I'm ambivalent about this. Not being a Chinese lawyer, I don't know what the statute says, but Audi and Mercedes are hardly 'monopolies' as we would see them in the US. There are plenty of other car companies and consumers are free to buy whatever they want. If the price is too high for an Audi, then buy a Geely. Clearly the pricing hasn't stopped people from buying the cars.


    Probably this is mixed for Tesla. Tesla gets major points in China for having fair pricing from day one and potentially even triggering this change (or at least making it happen sooner than it did). And if major OEMs take a profit hit from China, then that is less R&D focused on things that could hurt Tesla. But if Audi and Mercedes no longer price gouge, then the price gulf between a Tesla Model S and an Audi S8 is less wide. Given demand far exceeds supply at the moment, that shouldn't matter in the short term, but longer time, it might cost them some sales.
    6 Aug 2014, 10:22 AM Reply Like
  • chipdoctor
    , contributor
    Comments (2664) | Send Message
    It would be interesting to get Zhan's take on this; to see if he is as satisfied with the outcome as Tesla is.


    A free Model S should not be considered "no cost" unless Tesla thinks the Model S is worthless.
    6 Aug 2014, 11:27 AM Reply Like
  • JRP3
    , contributor
    Comments (10538) | Send Message
    There is no evidence that a free Model S was provided, so why would you make that up?
    7 Aug 2014, 10:20 AM Reply Like
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