Tesla Showroom To Come Up On Tribal Land In Connecticut To Skirt State Ban On Direct Sales

A new Tesla Inc TSLA showroom will come up this fall in Connecticut despite the state’s ban on direct sales. That’s because the EV maker will use a loophole that exists on tribal land.

What Happened: The sales and delivery center will be located at The Shops at Mohegan Sun which offers nearly 40 shops and boutiques in a two-story atrium spanning 130,000 square feet.

The showroom will be on the sovereign tribal land of the Mohegan tribe across from Todd English's Tuscany restaurant and will enable interested buyers to take home the model Y,3, or S.

Vehicle deliveries will take place at Sky Tower valet with test drives made possible around the resort, Mohegan Sun said in a statement.

President & General Manager of Mohegan Sun Jeff Hamilton expressed excitement about the new showroom and said, "This endeavor with Tesla marks an electrifying milestone in Mohegan Sun's commitment to fostering impactful relationships, promoting environmental sustainability and offering cutting-edge experiences for our millions of annual guests, each of which are core goals of Mohegan Sun and the Mohegan Tribe."

Why It Matters: The new showroom could be deemed a walk-around of the Connecticut state law against direct sales. Tesla, however, relies on a direct sales model, unlike most other automakers that rely on franchised dealerships.

Tesla has been trying to get direct-to-customer auto sales legalized in Connecticut to no positive end owing to staunch opposition from car dealers to the “Tesla bill.”

Connecticut is not the only one. Other states with a ban on direct sales include Louisiana and Texas, among others.

Tesla used a similar strategy of setting up on land owned by Native American tribes to open in New York last month and before in New Mexico.

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