Tesla Expands Showrooms on Tribal Lands to Sell Directly to Consumers
By SUSAN HAIGH Associated Press
July 28, 2023, 7:00 PM ET
Tesla is making significant strides in its efforts to establish showrooms on tribal lands, allowing the company to sell directly to consumers. This move allows Tesla to bypass state laws that prohibit vehicle manufacturers from acting as retailers and instead enforce the dealership model.
Mohegan Sun, a prominent casino and entertainment complex in Connecticut owned by the federally recognized Mohegan Tribe, recently announced a partnership with Tesla. The collaboration will see the opening of a showroom and sales and delivery center this fall on tribal land—where state laws do not apply.
This news follows the announcement in June of another Tesla showroom set to open in 2025 on the lands of the Oneida Indian Nation in upstate New York.
Lori Brown, executive director of the Connecticut League of Conservation Voters, expressed her support for Tesla’s decision. She stated, “I think it was a move that made complete sense. It is just surprising that it took this long, because Tesla had really tried, along with Lucid and Rivian. Anything that puts more electric vehicles on the road is a good thing for the public.”
However, the Connecticut Automotive Retail Association, which has persistently opposed bills allowing direct-to-consumer sales, called for a balance between tribal sovereignty and maintaining a level playing field for all car dealerships in the state.
Jeff Aiosa, executive director of the Connecticut dealers association, highlighted the fairness issue, arguing that all other manufacturers abide by the state franchise laws. Aiosa stated, “It’s not fair to have an unlevel playing field when all the other manufacturers abide by the state franchise laws and Tesla wants this exception to go around the law. I would suggest their pivoting to the sovereign nation is representative of them not wanting to abide by the law.”
Tesla has faced numerous challenges in several states, from denials of dealership licenses to courtroom battles. Currently, at least 16 states have amended their laws to allow direct-to-consumer sales by Tesla and other manufacturers. Yet, Aiosa believes that Connecticut will not change its laws, as 32 original equipment manufacturers, including major car companies like Toyota and Ford, abide by them.
In 2021, Tesla opened its first store and repair shop on Native American land in New Mexico. The facility, built in Nambé Pueblo, marked a significant milestone for the company in partnering with a tribe to circumvent state laws.
Tesla’s facility at Mohegan Sun, known as the Tesla Sales & Delivery Center, will be situated within a shopping and dining pavilion at the casino complex. Customers will have the opportunity to test drive Tesla models around the resort, while gamblers can use their loyalty rewards toward Tesla purchases.
In addition to selling vehicles, Tesla plans to showcase its solar and storage products at the Mohegan Sun location. With this move, Tesla continues to lead the way in expanding its reach and sales network, leveraging partnerships with sovereign tribal lands.