Tesla Expands Sales Channels by Establishing Stores on Tribal Lands

Tesla is increasing its efforts to establish showrooms on US tribal lands in order to sell its vehicles directly to consumers. This strategy allows the company to bypass state laws that prohibit vehicle manufacturers from acting as retailers, instead favoring the dealership model.

Recently, Mohegan Sun, a casino and entertainment complex in Connecticut owned by the federally recognized Mohegan Tribe, announced that Tesla will be opening a showroom with a sales and delivery center on its sovereign property. This move allows Tesla to operate outside of the state’s laws. Another Tesla showroom was also announced in June, set to open in 2025 on lands owned by the Oneida Indian Nation in upstate New York.

Lori Brown, executive director of the Connecticut League of Conservation Voters, expressed that the decision to establish showrooms on tribal lands was a logical move. She noted that Tesla, along with other electric carmakers Lucid and Rivian, had been attempting to change Connecticut’s law for some time. However, lawmakers supported by traditional car dealerships in their districts, regardless of political affiliation, historically opposed bills that would enable direct-to-consumer sales.

The Connecticut Automotive Retail Association, which has long opposed such bills, believes that there should be a balance between respecting tribal sovereignty and maintaining fair competition among all car dealerships in the state. The association’s chairperson, Hayden Reynolds, stated that they respect the Mohegan Tribe’s sovereignty but maintain their opposition to the direct-to-consumer sales model of Tesla and other electric vehicle manufacturers. According to Reynolds, Connecticut’s dealer franchise laws benefit consumers and ensure a competitive marketplace.

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