Tesla is going to use the loophole of operating on tribal land to finally operate in Connecticut, a state that has been aggressively blocking Tesla from operating sales, delivery, and service centers for years.
There are a few states in the US that have laws prohibiting direct sales of electric vehicles to the public without going through third-party dealerships.
These bans come from old laws that were meant to protect car dealers from their own automakers supplying the vehicles.
The idea is that automakers couldn’t open a company-owned store next to a third-party dealer after they have made the investment to sell and service their cars. It would be unfair competition.
Now, however, car dealerships are using those old laws to prevent automakers that never had deals with third-party franchise dealers, like Tesla, from selling their vehicles to the public, even though it’s fair competition. Tesla has been fighting those laws in many states with some success, but there are still a few states that are abusing these laws.
Connecticut has been one of them.
Tesla has made several different efforts to support its customers in the state, but it has found strong opposition from the legislation and the Connecticut Automotive Retailers Association (CARA), which finances state legislators.
At one point, Tesla opened a “gallery” in Connecticut. In that gallery, Tesla claimed that it didn’t have sales operations and would only educate the public. The auto dealer association managed to have Tesla’s “gallery” shut down through an effort that involved sending “secret shoppers” to try to make Tesla staff talk about sales and shut down the gallery.
After the latest efforts to change the laws were shut down by state legislation, Tesla has decided to change its strategy.
In New Mexico, Tesla found an interesting way to get around the direct sale ban. In 2021, Tesla managed to open its first store and service center in the state by opening inside an old casino north of Santa Fe, and it did it by partnering with the First Nation of Nambé Pueblo and opening the location on their tribal land.
Last year, the automaker did it again to open a second location in the state.
Tesla also recently took the tribal land strategy to New York, where it is now going to be able to open a new store despite the state’s limiting Tesla on the number of locations as part of an exemption on its direct-sale ban.
Now we learn that Tesla is using the same strategy in Connecticut.
Mohegan Sun, a casino and entertainment destination, announced that it is partnering with Tesla:
Mohegan Sun, one of the premier entertainment destinations in the United States, has announced that it is amping up its game by opening a state-of-the-art Tesla Electric Vehicle (EV) Showroom. Set to open this fall, the unique Tesla Sales & Delivery Center will be located in The Shops at Mohegan Sun. Locals and visitors alike will soon have the chance to take home the Model Y, Model 3, Model S and more. Guests will also be able to learn more about Tesla’s solar and storage products.
For now, they are only talking about a “showroom,” but buyers in Connecticut are going to be able to buy and take delivery of Tesla vehicles in the state – without having to go to neighboring states – for the first time.
It sounds like it could also eventually become a service center as Tesla and Mohegan Sun talk about training local technicians:
Tesla will also collaborate with Mohegan to integrate local talent into its workforce development programs, which can provide Mohegan Tribal members and Mohegan Team Members with opportunities to learn diverse skills and technician training, potentially paving the way for exciting career opportunities with Tesla.
The Tesla showroom at Mohegan Sun is slated to open in Fall 2023.