Elon Musk is opening Tesla showrooms on Native American tribal land to bypass local car dealership regulations.
Elon Musk is opening Tesla showrooms on Native American tribal land to bypass local car dealership regulations.
Tesla Opens Showroom and Delivery Center at Mohegan Sun
Tesla, the California-based electric automaker, recently announced plans to open a showroom and delivery center at Mohegan Sun, a casino and entertainment complex in Connecticut. This move is significant because the property is owned by the federally recognized Mohegan Tribe, which enjoys sovereign status and is not subject to state laws.
This is not the first time Tesla has partnered with a tribe to circumvent state regulations. Earlier this year, the company opened a store and repair shop in New Mexico on Native American land. Brian Dear, president of the Tesla Owners Club of New Mexico, believes that other states with tribal nations and similar restrictions on direct car sales will likely follow suit.
The decision to open a showroom at Mohegan Sun is applauded by environmental advocates like Lori Brown, executive director of the Connecticut League of Conservation Voters. Brown, who has been lobbying for a change in Connecticut’s law, stated, “Anything that puts more electric vehicles on the road is a good thing for the public.” She also expressed surprise that it took this long for Tesla to establish a presence on tribal land, considering their previous efforts with electric carmakers Lucid and Rivian.
However, opposition to direct-to-consumer car sales is not limited to the state legislature. The Connecticut Automotive Retail Association, which has been against such bills for years, believes in maintaining a level playing field for all car dealerships in the state. While respecting tribal sovereignty, the association argues that Tesla’s model disrupts a competitive marketplace. Hayden Reynolds, the association’s chairperson, stated, “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.”
Tesla has faced numerous challenges and legal battles in its quest to sell directly to consumers across various states. However, at least 16 states have already changed their laws to accommodate the direct-to-consumer model. Jeff Aiosa, executive director of the Connecticut dealers association, believes that Connecticut is unlikely to change its law, especially considering that 32 major car manufacturers currently abide by it. Aiosa argues that Tesla’s decision to establish a presence on sovereign land is an attempt to avoid complying with state franchise laws.
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The Mohegan Sun facility, called the Tesla Sales & Delivery Center, will be located in a shopping and dining pavilion within the casino complex. Customers will have the opportunity to test drive Tesla models around the resort, and gamblers can even use their loyalty rewards towards Tesla purchases. In addition to showcasing their electric vehicles, Tesla plans to exhibit its solar and storage products at the location.
Overall, Tesla’s decision to open a showroom and delivery center at Mohegan Sun represents another milestone in their efforts to expand their direct-to-consumer sales model. While it has faced opposition from traditional car dealerships and state regulations, Tesla continues to find alternative avenues for growth. The partnership with the Mohegan Tribe exemplifies the company’s innovative approach to overcoming obstacles and reaching a wider audience. As Tesla continues to lead the way in the electric vehicle industry, it remains to be seen how other states and tribes will react to this groundbreaking strategy.
