Tesla Is Sued for $3.85M for Trademark Infringement in China

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NEW YORK (TheStreet) -- Electric carmaker Tesla is being sued by a Chinese businessman who registered Tesla's trademark in 2006, before the company arrived in China.

VIDEO TRANSCRIPT:

Electric carmaker Tesla is being sued in China for trademark infringement.

Chinese businessman Zhan Baosheng is suing the company over Tesla's trademark, which he registered in both Chinese and English in 2006, before the company arrived in China. Baosheng is seeking about $3.8 million in compensation as well as the shutdown of showroom and supercharging stations, sales and marketing.

The lawsuit follows last year's ruling by Chinese regulators who sided with Tesla, finding that Baosheng's trademarks were invalid. Baosheng is appealing that decision. The case is expected to be heard by the Beijing Third Intermediate Court next month.

Tesla just delivered its first Model S cars in China in April and is working toward producing cars in the country, which CEO Elon Musk has said he expects to do within the next three to four years. 

In New York, I'm Brittany Umar reporting for TheStreet.

-- Written by Brittany Umar in New York.