Elon Musk’s bid to launch his own tequila brand called “Teslaquila” already faces a challenge from Mexico’s tequila industry, according to a report Tuesday.
Musk’s company, the electric-car maker Tesla, has filed to trademark “Teslaquila” in the U.S., Mexico and the European Union. The tech CEO tweeted a mock-up of a Teslaquila bottle label on Oct. 12, noting that the tequila brand was “coming soon.”
Mexico’s Tequila Regulatory Council (CRT), which represents native tequila producers and upholds strict standards for the liquor, has opposed the trademark application, Reuters reported. The council argues that tequila is a “protected word” that can only be used if Musk produces “Teslaquila” in Mexico and adheres to other restrictions.
“If it wants to make Teslaquila viable as a tequila it would have to associate itself with an authorized tequila producer, comply with certain standards and request authorization from Mexico’s Industrial Property Institute,” the CRT said in a statement obtained by Reuters. “Otherwise it would be making unauthorized use of the denomination of origin for tequila.”
Tesla did not immediately respond to a request for comment on the report.
Tesla has filed applications to trademark “Teslaquila” as a “distilled agave liquor” and a “distilled blue agave liquor,” according to Reuters. U.S. federal law notes that tequila is a “distinctive product of Mexico, manufactured in Mexico in compliance with the laws of Mexico regulating the manufacture of Tequila for consumption in that country.”
It’s unclear if Musk actually intends to launch a tequila brand. The Tesla chief has experimented in unexpected product launches in the past, selling flamethrowers through one of his other firms, The Boring Company, earlier this year.