According to the latest news reports, multinational EV manufacturer Tesla Inc is taking steps to establish showrooms on tribal lands, providing a direct-to-consumer sales option in states that currently prohibit manufacturers from acting as retailers. The Mohegan Tribe’s Mohegan Sun complex in Connecticut, recognized by the federal government, recently revealed its partnership with Tesla to open a showroom with a sales and delivery centre this autumn on the sovereign property, where state laws regarding dealership models do not apply. This move follows a previous announcement in June about Tesla’s plans to open another showroom on the Oneida Indian Nation’s lands in upstate New York in 2025.
Advocates for electric vehicles and environmentalists are enthusiastic about this development, as it expands access to electric cars, benefiting the public. However, the traditional dealership model, supported by lawmakers with active car dealerships in their districts, has historically opposed direct-to-consumer sales bills.
The Connecticut Automotive Retail Association, a staunch opponent of such bills, acknowledges the Mohegan Tribe’s sovereignty but emphasizes the need for fair competition among all car dealerships in the state. The association believes that Connecticut’s dealer franchise laws benefit consumers and create a level playing field.
Tesla has faced challenges in several states while attempting to secure dealership licenses and change existing laws. However, it has successfully influenced at least 16 states to allow direct-to-consumer sales. Notably, earlier this year, Delaware’s Supreme Court overturned a ruling that prohibited Tesla from selling its cars directly to customers.
In an effort to navigate state restrictions, Tesla previously established a store and repair shop on Native American land in New Mexico in 2021. This facility, located in Nambé Pueblo, marked the first instance of Tesla collaborating with a tribe to circumvent state laws, and it appears to have set a precedent for similar initiatives.
Tesla’s forthcoming facility at Mohegan Sun named the Tesla Sales & Delivery Center, will be situated in a shopping and dining pavilion within the casino complex. Customers will have the opportunity to test drive Tesla models on the resort premises and even utilize their loyalty rewards from gambling toward Tesla purchases. Additionally, Tesla plans to showcase its solar and storage products at this location.
As Tesla continues to explore opportunities on tribal lands, it remains uncertain whether Connecticut will change its laws to accommodate the direct-to-consumer sales model. Some industry representatives argue that Tesla’s pursuit of sovereign land showrooms is an attempt to avoid compliance with state laws that other manufacturers adhere to. The situation has sparked debates about fair competition and the future of car sales models in the evolving electric vehicle market.
