But Zhan, who registered the "Tesla" trademark before the US 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 ($US3. 85 million) in compensation, his lawyer Zhu Dongxing said on Tuesday.
In January, Veronica Wu, head of Tesla's China operations, told Reuters the company had resolved the trademark dispute that had prevented it from using "Te Si La", the Chinese name best known among Chinese consumers, which Tesla wanted to use in China.
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.
Zhan, who claims ownership of the "Tesla" trademark, has long been a headache for the Palo Alto, California-based car maker and in part contributed to Tesla's belated arrival in China.
US electric car maker Tesla Motors 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.
Read more here: Business Spectator