Tesla faces suit over trademark in China

Tesla Motors Inc, the United States-based electric car producer, is being sued in China for trademark infringement in the latest example of the difficulties foreign firms face while doing business in the country.

Zhan Baosheng, who registered rights to the name before Tesla entered China, wants Tesla to shut its showrooms, service centers and supercharging facilities in China; stop all sales and marketing activities in the country; and pay him 23.9 million yuan ($3.9 million) in compensation, according to a lawsuit filed July 3 in Beijing.

Zhan is the one attempting to steal the US carmaker's property, Simon Sproule, a spokesman for Tesla, said in an e-mail. The company, which has lodged complaints against Zhan to Chinese authorities and won, has not been served with or seen the lawsuit, he said.