Tesla is intensifying its efforts to establish showrooms on tribal lands, where it can directly sell vehicles to consumers. This allows Tesla to bypass state laws that prevent vehicle manufacturers from acting as retailers and instead, promotes the dealership model.
Mohegan Sun, an entertainment complex and casino in Connecticut owned by the federally recognized Mohegan Tribe, recently announced that Tesla will open a showroom with a sales and delivery center on its sovereign property this fall. As the state law doesn’t apply on tribal lands, Tesla can freely operate the showroom.
This news follows the announcement of another upcoming Tesla showroom on the lands of the Oneida Indian Nation in upstate New York, set to open in 2025.
“I think it was a move that made complete sense,” said Lori Brown, executive director of the Connecticut League of Conservation Voters, an organization that has long advocated for a change in Connecticut’s laws.
“It is just surprising that it took this long, because Tesla had really tried, along with Lucid and Rivian,” she referred to two other electric automakers. “Anything that puts more electric vehicles on the road is a good thing for the public.”
Brown pointed out that lawmakers with car dealerships in their districts, regardless of their political affiliation, have traditionally opposed bills allowing direct-to-consumer sales.
The Connecticut Automotive Retail Association has been against such bills for years and believes there should be a balance between respecting tribal sovereignty and maintaining fairness among all car dealerships in the state.
“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,” stated Hayden Reynolds, the association’s chairperson. “Connecticut’s dealer franchise laws benefit consumers and provide a competitive marketplace.”
Throughout the years, Tesla has faced various challenges in acquiring dealership licenses, advocating for law changes, and appealing decisions in courts across multiple states. However, the company achieved a victory earlier this year when the Delaware Supreme Court overturned a ruling that prohibited Tesla from directly selling cars to customers.
Jeff Aiosa, executive director of the Connecticut dealers association, stated that at least 16 states have modified their laws to allow Tesla and other direct-to-consumer manufacturers to operate. He does not foresee Connecticut changing its law, considering that 32 major car companies, including Toyota and Ford, currently abide by it.
“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,” Aiosa said. “I would suggest their pivoting to the sovereign nation is representative of them not wanting to abide by the law.”
In 2021, Tesla established its first store and repair shop on Native American land in New Mexico. The facility, located in Nambe Pueblo, north of Santa Fe, marked the first instance of collaboration between Tesla and a tribe to circumvent state laws, although the idea had been in development for years.
Brian Dear, president of the Tesla Owners Club of New Mexico, predicted at the time that other states inhabited by tribal nations, with laws prohibiting direct car sales by manufacturers, would likely follow New Mexico’s lead.
“I don’t believe at all that this will be the last,” he said.
Mohegan Sun’s facility for Tesla, named the Tesla Sales & Delivery Center, will be situated within a shopping and dining pavilion in the large casino complex. Customers will have the opportunity to test drive Tesla models around the resort, and gamblers will be able to use their loyalty rewards towards Tesla purchases.
Additionally, Tesla plans to showcase its solar and storage products at this location.