Tesla Partnering With Tribal Casinos for Vehicle Showrooms

Tesla is collaborating with federally recognized Native American tribes to construct sales, service, and distribution hubs for their electric automobiles.

This week, Tesla, the company owned by Elon Musk which designs and manufactures electric cars, SUVs, and trucks, as well as energy storage devices like batteries and solar panels, announced a partnership with the Mohegan Tribe. This partnership will allow the electric vehicle conglomerate to open a “state-of-the-art Tesla Electric Vehicle (EV) showroom” on the Mohegan Sun grounds in Uncasville, Conn. sometime this fall. As US state laws typically require automobile manufacturers to only sell to consumers via third-party dealerships, Tesla has been partnering with sovereign Native American tribes as a solution. The showroom will feature new Tesla vehicles as well as serve as a delivery center where customers can pick up their online purchases. (Image: Getty)

Jeff Hamilton, President and General Manager of Mohegan Sun, is thrilled for the upcoming Tesla EV Showroom opening this fall at the resort. He believes it marks a significant milestone in Mohegan Sun’s dedication to creating meaningful partnerships, striving for environmental sustainability, and offering cutting-edge experiences for visitors. The Tesla Showroom will be at The Shops at Mohegan Sun, adjacent to Todd English’s Tuscany eatery. Patrons will be able to get test drives and purchase deliveries at the Sky Tower valet.

Regulatory Loophole

EVs require more of a customer-focused sales environment.

The Electrification Coalition, a nonpartisan, nonprofit organization that develops and implements regulations promoting the adoption of electric vehicles (EVs), reports that 29 U.S. states limit or prohibit direct EV sales from a manufacturer to a consumer. Connecticut is among the 19 states that bars direct sales. This model was created to protect car dealers from being bypassed by car manufacturers when selling directly to consumers, but the coalition believes that this system does not benefit the EV industry. EVs are significantly different from other vehicles; they require more customer-focused sales strategies due to their complicated information such as range, charging options, and available incentives.

According to the Electrification Coalition, having to learn details and answer questions for every potential buyer requires dealers to dedicate a lot of time. Tesla has found a way to avoid this by opening delivery and distribution centers on sovereign lands, as these are not subject to state laws. Both Tesla and the Mohegan Tribe confirmed this unprecedented collaboration in Connecticut with the opening of the first and premier sales and delivery center located on tribal land. This partnership, called Tesla Tribal Partnerships, is a major step for Tesla and EV in general.

Tesla Tribal Partnerships

Tesla is set to open its first sales, service, and delivery center in Connecticut this fall, and the EV manufacturer is also partnering with the Oneida Nation to bring a showroom to the tribe’s Turning Stone Resort Casino in upstate New York. In addition, Tesla has a showroom in the First Nation of Nambe Pueblo near the Buffalo Thunder Resort Casino in New Mexico.