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When it first appeared, Tesla’s tequila was an April Fool’s joke on Elon Musk Twitter Account. It was also called “Teslaquila”. But that name, in the end, wouldn’t make it to the end product – which was very, very real.
See, “Teslaquila” is not possible due to the regulations of the tequila industry. The word “tequila” is a designation of origin; this means that the rights to use this word belong only to the tequila agro-industry. It also means that no one can register the word as their property.
The problem with the brand is that “ Teslaquila ” is too similar to the word tequila, according to the Tequila Regulatory Council (CRT), the body responsible for regulating and authorizing all processes related to manufacturing, consumption and tequila trade. Martín Muñoz, head of the certification body at CRT, said “Teslaquila” could cause confusion or misunderstanding about the origin of the product, and Mexican industrial property law denied the mark. Basically, because “Teslaquila” conjures up the word tequila, it cannot be registered as a trademark.
In May 2018, a legal representative attempted to register the Teslaquila brand in Mexico, the only country where tequila is made. In February 2019, the CRT filed its opposition to the trademark; in March 2019, the Mexican Institute of Industrial Property declared that “Teslaquila” could not be registered because it was too close to the appellation of origin tequila. In a July 16 response, Musk’s team disputed this, claiming that “Teslaquila” was a natural variant of Tesla and of the “-quila” suffix. On January 16, the final decision fell: the Mexican Institute of Industrial Property declared that it could not register the mark.
Although the CRT rejected “Teslaquila,” it was not the end of the line – just the end of this Last name. Ultimately, the product was called “Tesla Tequila”. Asked how this affected the company’s plans and schedule, Javier Verdura, director of product design at Tesla, declined to comment.
Registration is the first step a business must take to establish a trademark. This is the same process followed by the 164 companies that sell more than 1,800 brands of tequila.
Last February, according to Muñoz, Tesla ditched “Teslaquila” and went ahead, instead, with Tesla Tequila. Tesla Tequila is registered in Mexico and the United States. In Mexico, it is associated with Destiladora del Valle de Tequila, in Tequila, Jalisco, one of the many states where tequila can be made.
Then there was an obstacle that was not Regulatory: The Tesla Tequila lightning-shaped glass bottle comes into play. The design was inspired by Tesla’s GPS maps icon that shows the location of charging stations. “Several vendors have told us that glass bottles are impossible to mass produce,” Verdura said.
Verdura also said that making tequila public right now has little to do with external factors like the pandemic (and the fact that tequila consumption is on the rise this year) but with the unique design of the bottle.
On November 5, the lightning bolt bottle launched for $ 250; it sold on the same day. “There was no doubt this was going to be the result,” Verdura said. The product was manufactured by Nosotros Tequila, a brand based in California. Tesla decided to accept it because he “tasted several tequilas and their tequila was the best.”
And in case you were wondering, the CRT is also very happy. “Today the tequila industry has someone as important as Elon Musk representing it,” Muñoz said. “It is, without a doubt, an advantage for all tequila producers because he gives his image as an important businessman and he shows that he wants to comply with the rules of this industry. We welcome Elon Musk and the tequila brand Tesla. “
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