Elon Musk's plan to launch a tequila brand has run up against opposition from Mexican industry groups.

The Tesla mogul announced the plans last month and has applied to register "Teslaquila" as a trademark. But he could face problems if the tequila industry opposes his plans.

The term "tequila" is protected under Mexican law by a certification mark, which allows the regulator, the Tequila Regulatory Council (CRT), to control who can and and can't use the term.

It has said that Tesla's proposed brand name "evokes the word Tequila" which is "a protected word".

"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.