Tesla Expands Direct-to-Consumer Showrooms to Tribal Lands
As Tesla aims to open direct-to-consumer showrooms across the US, some tribal lands are emerging as workarounds to restrictive state franchise laws banning automakers from retail sales.
Tesla is ramping up efforts to open direct-to-consumer showrooms on tribal lands where it can bypass state laws barring automakers from retail sales. The moves enable Tesla to sell directly to consumers rather than through independent dealerships.
Mohegan Sun, a casino and entertainment complex in Connecticut owned by the Mohegan Tribe, announced this week that Tesla will open a sales and delivery center at the venue this fall. As sovereign land, the complex is not subject to Connecticut's restrictive dealer franchise laws.
This comes after plans were unveiled in June for a new Tesla showroom in 2025 on lands of the Oneida Indian Nation in upstate New York, similarly bypassing New York's ban on direct automaker sales.
"I think it was a move that made complete sense," said Lori Brown, head of the Connecticut League of Conservation Voters, which has long lobbied to amend Connecticut's restrictive dealer franchise laws.
Tesla utilising tribal lands to open direct sales centers that bypass state dealer laws
Recent announcements for new sales centers in CT and NY tribal lands
Allows Tesla to sell directly to consumers rather than through independent dealers
A strategic workaround to expand Tesla's retail presence amid legal limitations