Tesla is intensifying its efforts to establish showrooms on tribal lands, allowing them to directly sell their vehicles to customers. This strategic move bypasses state laws that restrict vehicle manufacturers from acting as retailers, preferring the traditional dealership model.
Recently, Mohegan Sun, a prominent casino and entertainment complex in Connecticut under the ownership of the federally recognized Mohegan Tribe, disclosed its collaboration with Tesla. The partnership will result in the opening of a showroom and sales and delivery center on the tribe’s sovereign property this autumn, exempt from the state’s regulations.
Furthermore, Tesla’s expansion plan includes another showroom scheduled to open in 2025 on the lands of the Oneida Indian Nation in upstate New York. This proactive approach by Tesla allows them to access the consumer market in these regions while avoiding the limitations imposed by state legislation.
Lori Brown, the executive director of the Connecticut League of Conservation Voters, expressed her strong approval of the move made by Tesla. According to her, the decision to establish a showroom on tribal lands makes complete sense. Her organization has been actively lobbying for years to bring about changes in Connecticut’s laws, likely in relation to the restrictions on direct sales by vehicle manufacturers.
“It is just surprising that it took this long, because Tesla had really tried, along with Lucid and Rivian,” Lori Brown remarked, referring to two other electric car manufacturers. She emphasized that any effort to put more electric vehicles on the road is a positive development for the public.
Brown pointed out that regardless of their political affiliation, lawmakers with car dealerships in their districts have historically opposed bills that would enable direct-to-consumer sales.
On the other side of the debate, the Connecticut Automotive Retail Association has been consistently opposing such bills for years. The association believes there should be a balance between respecting tribal sovereignty and ensuring a “level playing field” for all car dealerships in the state.
Hayden Reynolds, the association’s chairperson, stated in a press release, “We respect the Mohegan Tribe’s sovereignty and the unique circumstance in which they operate their businesses on Tribal land, but we strongly believe that this does not change the discussion about Tesla and other EV manufacturers with direct-to-consumer sales, and we continue to oppose that model. Connecticut’s dealer franchise laws benefit consumers and provide a competitive marketplace.”
Over the years, Tesla has faced challenges in several states, encountering denials of dealership licenses, legal battles, and efforts to change laws to allow direct-to-consumer sales. Nevertheless, the company achieved a significant victory this year when Delaware’s Supreme Court overturned a previous ruling that prohibited Tesla from selling its vehicles directly to customers.
Around 16 states have already modified their laws to accommodate direct-to-consumer manufacturers like Tesla, according to Jeff Aiosa, the executive director of the Connecticut dealers association. However, he believes Connecticut is unlikely to change its law, especially since 32 major car companies, including Toyota and Ford, comply with the state’s franchise laws.
Aiosa argues that it wouldn’t be fair to create an unbalanced playing field by allowing Tesla to bypass the existing laws that other manufacturers adhere to. He suggests that Tesla’s pivot towards partnering with sovereign nations is a way for the company to avoid abiding by these laws.
In 2021, Tesla made a significant move by opening its first store and repair shop on Native American land in New Mexico, specifically in Nambé Pueblo, north of Santa Fe. This partnership with a tribe allowed Tesla to operate outside the confines of state laws and was an idea in development for several years. Brian Dear, president of the Tesla Owners Club of New Mexico, predicted that other states with tribal nations and laws banning direct car sales by manufacturers might follow New Mexico’s example.
“I don’t believe at all that this will be the last,” said the president of the Tesla Owners Club of New Mexico, expressing his belief that Tesla’s partnership with tribal nations for sales and delivery centers is likely to continue.
The Tesla Sales & Delivery Center at Mohegan Sun will be situated in a shopping and dining pavilion within the expansive casino complex. Customers will have the opportunity to test drive various Tesla models around the resort, and even gamblers will be able to utilize their loyalty rewards towards Tesla purchases, creating an interesting synergy between the casino and the electric carmaker.
Additionally, Tesla plans to showcase its solar and storage products at this location, presenting an opportunity for customers to explore and learn about their renewable energy solutions. This move reflects Tesla’s dedication to promoting sustainable energy and providing customers with comprehensive options for their energy needs.