Michael, be very careful. The things of the occult are imitations of the things of God, and an imitation is always designed to look as much as possible like the real thing. As an illustration, I have a vivid memory of one night while I was involved in spiritualism. One of the members of the circle came bursting in waving a Bible opened at 1 Corinthians 12 and saying, "Look! What we do is in the Bible!" The truth was, what we were doing was a very, very long way from the spiritual gifts listed in that passage ... but the undiscerning eye could not tell the difference.
Telepathy (direct thought to thought communication) is one of those areas. It mimics the spiritual gifts of word of knowledge and prophecy, but where those gifts operate though the Holy Spirit, telepathy draws on occult (demonic) sources.
Jesus didn't "read people's minds." Even though He had laid aside His own divine omniscience when He became man, He lived in total dependence upon and harmony with the Holy Spirit, who as God is also omniscient. That same omniscience is what allows the Holy Spirit living within us to give us the spiritual gifts of word of knowledge and prophecy. The difference is, the Holy Spirit will show us only what we need to know in order to pray effectively or otherwise minister to the person concerned. Telepathy, on the other hand, is a kind of mental tresspassing by which we seek to invade their private space.
blessings,
Lynn