{"id":559,"date":"2025-01-24T16:17:49","date_gmt":"2025-01-24T16:17:49","guid":{"rendered":"https:\/\/cleantechnica.com\/?p=301807"},"modified":"2025-01-24T16:17:49","modified_gmt":"2025-01-24T16:17:49","slug":"teslas-workaround-to-unfriendly-states-build-showrooms-on-tribal-lands","status":"publish","type":"post","link":"https:\/\/demo4.dedicatedhost247.com\/green\/green-news\/teslas-workaround-to-unfriendly-states-build-showrooms-on-tribal-lands\/","title":{"rendered":"Tesla\u2019s Workaround To Unfriendly States? Build Showrooms On Tribal Lands"},"content":{"rendered":"<p><center><a href=\"https:\/\/cleantechnica.fundjournalism.org\/contribute\/\"><img loading=\"lazy\" data-attachment-id=\"299178\" data-permalink=\"https:\/\/cleantechnica.com\/?attachment_id=299178\" data-orig-file=\"https:\/\/cleantechnica.com\/files\/2023\/06\/cleantechnica-support-subscribe.png\" data-orig-size=\"1686,648\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"cleantechnica support subscribe\" data-image-description data-image-caption data-medium-file=\"https:\/\/cleantechnica.com\/files\/2023\/06\/cleantechnica-support-subscribe-400x154.png\" data-large-file=\"https:\/\/cleantechnica.com\/files\/2023\/06\/cleantechnica-support-subscribe-800x307.png\" class=\"aligncenter wp-image-299178 size-full bannerad\" src=\"https:\/\/cleantechnica.com\/files\/2023\/06\/CleanTechnica-support-independent-cleantech-media.png\" alt width=\"1686\" height=\"648\"><\/a><\/center><\/p>\n<p>Over Tesla\u2019s 20 years in business, the company has ruffled a few feathers from those who want to maintain the status quo. Of course, traditional automakers and fossil fuel companies were opposed to Tesla\u2019s very existence from the beginning, for obvious reasons. Tesla showed the world that EVs could be both practical and fun. Traditional carmakers saw the writing on the wall but couldn\u2019t come up to speed with EVs quickly enough, so they continued to seed FUD (Fear, Uncertainty, and Doubt) in order to buy some time to catch up. And since EVs run purely on electricity, the need for fossil fuels will diminish as EVs take hold. So, the fossil fuel industry also did its best to limit the company\u2019s success. And yet, despite these powerful foes, Tesla thrives.<\/p>\n<p>But one of Tesla\u2019s most aggressive adversaries is an industry that probably outlived its usefulness years ago: third party car dealerships. While automotive franchise laws were originally intended to protect consumers, today they serve mainly to maximize dealer profits. Dealership rules stifle competition through exclusive territory arrangements, and <a href=\"https:\/\/www.usnews.com\/opinion\/economic-intelligence\/2015\/01\/19\/laws-protecting-auto-franchises-are-bad-for-consumers-and-innovation\" target=\"_blank\" rel=\"noopener noreferrer\">inhibit innovation<\/a> by preventing new players from entering the automotive market. Third-party car dealers oppose Tesla for two reasons: Tesla sells directly to consumers, bypassing the need (and extra costs incurred) for a third-party dealer network, and Tesla exclusively sells EVs, which require significantly less service than cars with internal combustion engines.<\/p>\n<p>EVs include <a href=\"https:\/\/www.edfenergy.com\/energywise\/how-do-electric-cars-work\" target=\"_blank\" rel=\"noopener noreferrer\">90% fewer moving parts<\/a> than traditional ICE cars. They require no oil changes, tune-ups, or transmission maintenance (there is no transmission). Also, regenerative braking assures that brake rotors and pads last far longer than they do in ICE cars. Car dealerships make <a href=\"https:\/\/www.edmunds.com\/car-buying\/where-does-the-car-dealer-make-money.html\" target=\"_blank\" rel=\"noopener noreferrer\">roughly half their profits from service and parts<\/a>: as much as they make from new car sales, used car sales, car loans, and extended warranties combined. So, as Tesla succeeds in showing the world that EVs can be both practical and <a href=\"https:\/\/cleantechnica.com\/2023\/05\/18\/tesla-model-y-to-be-best-selling-car-in-world-in-2023\/\">popular<\/a>, and as traditional carmakers get onboard with the EV revolution, car dealer networks stand to lose a huge chunk of their profits.<\/p>\n<p>Car dealers hold significant sway with federal and state governments. The National Auto Dealership Association PAC alone <a href=\"https:\/\/www.opensecrets.org\/political-action-committees-pacs\/national-auto-dealers-assn\/C00040998\/summary\/2022\">donated over $2.5 million last year<\/a> to politicians in national races who were friendly to their cause. This political influence has perpetuated the independent franchise model for automobiles beyond its useful lifetime. We, as consumers, have the right to buy our iPhones directly from Apple, and our computers directly from Lenovo and Dell (or Apple). Why are cars different? Dealer representatives claim the independent dealer model protects the consumer and lowers prices, yet most consumers rate the buying experience at traditional car dealerships as \u201ctorturous.\u201d Most consumers would prefer to stand in line at the DMV or <a href=\"https:\/\/www.forbes.com\/sites\/michellekrebs\/2013\/03\/19\/should-car-buying-be-like-online-dating-versus-a-dental-visit\/?sh=5bf950f796fd\" target=\"_blank\" rel=\"noopener noreferrer\">even get dental work<\/a> rather than buy a car at a dealership.<\/p>\n<p>Tesla offers a contact-free online car-buying experience with no need for negotiation or haggling. The price posted is the price you pay. The \u201csalespeople\u201d at Tesla showrooms are salaried employees, not commissioned contractors who only make money when they sell something. And this leads to a less stressful buying experience for the consumer. But Tesla continues to fight these special interest groups who are hell bent on maintaining the status quo. This battle has limited the company\u2019s ability to build out its own local presence by establishing new showrooms and local service centers. But recently, Tesla has begun fighting back against these groups in a creative and unexpected way.<\/p>\n<h3>Partnering with Tribal Nations<\/h3>\n<p>Tribal Lands or \u201cReservations\u201d are sovereign nations which exist within the borders of traditional U.S. states. Currently, 39 of the 50 states include at least one tribal nation. As sovereign nations, tribal lands are not subject to state and local jurisdiction or restrictions. Beginning in 2021, Tesla began partnering with individual tribal nations to build new showrooms within states that are prohibiting or restricting the company\u2019s direct sales model. The first Tesla showroom and service center in a tribal nation opened in Namb\u00e9 Pueblo, north of Santa Fe, New Mexico. The company opened a second showroom in New Mexico <a href=\"https:\/\/www.krqe.com\/news\/new-mexico\/tesla-dealership-now-open-on-the-santa-ana-pueblo\/\" target=\"_blank\" rel=\"noopener noreferrer\">on the Santa Ana Pueblo<\/a> in June of this year.<\/p>\n<div id=\"attachment_301812\" class=\"wp-caption alignnone\" readability=\"33.58152173913\"><img aria-describedby=\"caption-attachment-301812\" data-attachment-id=\"301812\" data-permalink=\"https:\/\/cleantechnica.com\/2023\/08\/01\/teslas-workaround-to-unfriendly-states-build-showrooms-on-tribal-lands\/tesla-nm-sales-service-350nm-900px\/\" data-orig-file=\"https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px.jpg\" data-orig-size=\"900,652\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Tesla-NM-Sales-Service-350NM-900px\" data-image-description data-image-caption=\"\n\n<p>Tesla opened its first showroom and service center on tribal lands at the Santa Ana Pueblo in New Mexico in September, 2021. Photo by 350 New Mexico (@350NM on Twitter).<\/p>\n<p> &#8221; data-medium-file=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px-400&#215;290.jpg&#8221; data-large-file=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px-800&#215;580.jpg&#8221; decoding=&#8221;async&#8221; loading=&#8221;lazy&#8221; class=&#8221;wp-image-301812 size-full&#8221; src=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px.jpg&#8221; alt=&#8221;Tesla showroom and service center on tribal lands in New Mexico.&#8221; width=&#8221;900&#8243; height=&#8221;652&#8243; srcset=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px.jpg 900w, https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px-400&#215;290.jpg 400w, https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px-800&#215;580.jpg 800w, https:\/\/cleantechnica.com\/files\/2023\/08\/Tesla-NM-Sales-Service-350NM-900px-768&#215;556.jpg 768w&#8221; sizes=&#8221;(max-width: 900px) 100vw, 900px&#8221;><\/p>\n<p id=\"caption-attachment-301812\" class=\"wp-caption-text\"><em>Tesla opened its first showroom and service center on tribal lands at the Namb\u00e9 Pueblo, north of Santa Fe, New Mexico, in September, 2021. Photo by 350 New Mexico (<a href=\"https:\/\/twitter.com\/350NM\" target=\"_blank\" rel=\"noopener noreferrer\">@350NM on Twitter<\/a>).<\/em><\/p>\n<\/div>\n<p>The next Tesla showroom to be built on tribal lands will be located on the Mohegan tribe\u2019s native lands in Connecticut at the <a href=\"https:\/\/ctmirror.org\/2023\/07\/26\/tesla-mohegan-sun-ct-store-ev-car-sales\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mohegan Sun Casino and Resort<\/a>. Tesla has been embroiled with the Connecticut car dealership association in a multi-year legal battle to allow the company to sell cars directly in the state. By building the showroom on native lands, Tesla will be able to reach new prospective customers in Connecticut without violating state laws. That showroom is expected to be completed some time this fall.<\/p>\n<p>Even some \u201cTesla-friendly\u201d states like New York have state-wide caps on the number of showrooms Tesla is allowed, so Tesla partnered with the Oneida nation in upstate New York to build a Tesla showroom to serve the Oneida nation as well as customers throughout upstate NY. That showroom is expected to be completed in 2025. In addition to sales and service, the project includes Tesla Superchargers to accommodate EV drivers on road trips through the area.<\/p>\n<div id=\"attachment_301814\" class=\"wp-caption aligncenter\" readability=\"33\"><img aria-describedby=\"caption-attachment-301814\" data-attachment-id=\"301814\" data-permalink=\"https:\/\/cleantechnica.com\/2023\/08\/01\/teslas-workaround-to-unfriendly-states-build-showrooms-on-tribal-lands\/tesla-sales-service-oneida-ny-900px\/\" data-orig-file=\"https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px.jpg\" data-orig-size=\"900,505\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"tesla-sales-service-oneida-ny-900px\" data-image-description data-image-caption=\"\n\n<p>Rendering of proposed Tesla Sales and Service center to be built on Oneida Tribal Lands in upstate New York.<\/p>\n<p> &#8221; data-medium-file=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-400&#215;224.jpg&#8221; data-large-file=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-800&#215;449.jpg&#8221; decoding=&#8221;async&#8221; loading=&#8221;lazy&#8221; class=&#8221;size-large wp-image-301814&#8243; src=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-800&#215;449.jpg&#8221; alt=&#8221;Rendering of proposed Tesla Sales and Service center to be built on Oneida Tribal Lands in upstate New York.&#8221; width=&#8221;800&#8243; height=&#8221;449&#8243; srcset=&#8221;https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-800&#215;449.jpg 800w, https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-400&#215;224.jpg 400w, https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-768&#215;431.jpg 768w, https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px-600&#215;337.jpg 600w, https:\/\/cleantechnica.com\/files\/2023\/08\/tesla-sales-service-oneida-ny-900px.jpg 900w&#8221; sizes=&#8221;(max-width: 800px) 100vw, 800px&#8221;><\/p>\n<p id=\"caption-attachment-301814\" class=\"wp-caption-text\"><em>Rendering of proposed Tesla Sales and Service center to be built on Oneida Tribal Lands in upstate New York.<\/em><\/p>\n<\/div>\n<p>Tribal nations benefit from these projects with new jobs and revenue from both taxes and increased tourism. Taxes vary in different sovereign nations, but in the case of the Oneida showroom, the sales tax that would normally go to the state on the sale of Tesla vehicles will be paid instead to the Oneida sovereign nation. County taxes are paid by the buyer according to the county in which they reside. Tesla benefits by increasing its exposure, increasing sales, and improving its service network. But states lose out on the sales taxes that they otherwise would have collected had the store been built outside the reservation.<\/p>\n<p>Will building Tesla showrooms on tribal nation grounds become the norm? Or will states wake up to the fact that direct sales of EVs represent the future and give up on the outdated dealership model? Only time will tell.<\/p>\n<p>Got an opinion on this move by Tesla? Let us know in the comments.<\/p>\n<p><em><a href=\"https:\/\/cleantechnica.com\/tag\/tesla-stores\/\">More articles about Tesla stores on CleanTechnica<\/a>.<\/em><\/p>\n<p>\n&nbsp; <\/p>\n<hr>\n<p> <em>I don&#8217;t like paywalls. You don&#8217;t like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong \u2014 and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don&#8217;t like paywalls, and so we&#8217;ve decided to ditch ours.<\/em> <em>Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It&#8217;s a never-ending Olympic challenge to stay above water or even perhaps \u2014 <strong>gasp<\/strong> \u2014 grow. So &#8230;<br \/>\n<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over Tesla\u2019s 20 years in business, the company has ruffled a few feathers from those who want to maintain the status quo. Of course, traditional automakers and fossil fuel companies were opposed to Tesla\u2019s very existence from the beginning, for obvious reasons. Tesla showed the world that EVs could be both practical and fun. Traditional [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":560,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/posts\/559"}],"collection":[{"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/comments?post=559"}],"version-history":[{"count":1,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/posts\/559\/revisions"}],"predecessor-version":[{"id":3244,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/posts\/559\/revisions\/3244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/media\/560"}],"wp:attachment":[{"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/media?parent=559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/categories?post=559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo4.dedicatedhost247.com\/green\/wp-json\/wp\/v2\/tags?post=559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}