Popular electric carmaker Tesla Motors Inc's plans to enter the world's biggest auto market have stalled after a businessman in China claimed trademark rights to the name, people close to the California-based company have told Reuters.

The maker of the best-selling US electric car, the premium Model S sedan with a price tag of $70,000, had originally hoped to launch a flagship showroom in Beijing at the start of the year, according to three sources, but has had to put that idea on hold due in part to the trademark issue.

As a result, the 10-year-old company's first shop-front in China, at the Parkview Green Fangcaodi mall in the capital, sits boarded up. While there is no Tesla sign, the shop is adorned with billboards of the Model S, which was launched in the United States last year.

In addition to the trademark issue, Tesla has yet to complete product registration with Chinese authorities enabling the sale of the Model S, although one of the sources said Tesla was almost through with the process.