Tesla and Native American gaming tribes are getting inventive to supply extra financial alternative for the nearly-trillion greenback firm in addition to tribes that function as enterprise entities in some respects. They are bypassing antiquated auto dealer-protective legal guidelines on the state stage to promote electrical automobiles on to shoppers.
What occurs in Vegas would possibly or won’t keep in Vegas, however what occurs on sovereign tribal land is, for essentially the most half, outdoors the purview of state lawmakers or legislation enforcement officers regardless.
Cutting Out the “Middle Man”
In many states, vehicle makers are solely allowed to promote electrical automobiles to shoppers via licensed (third-party) auto sellers. The legal guidelines, in additional than two dozen states, both ban direct sales or tremendously restrict them and had been designed to maintain producers from attempting to bypass established dealerships with what was once a novel product. Direct sales are banned outright in nearly 20 states.
Industry stakeholders just like the Electrification Coalition, a purportedly nonpartisan, nonprofit group, say the legal guidelines are outdated and they would appear to hinder the group’s objective of constructing it simpler for shoppers to get their hinds around the wheel of an EV. The coalition works with lawmakers and others on the state and federal ranges.
“EVs are not well suited for the dealership model. There is a lot more information to convey for EVs during the sale process; questions on things like range, how and where to charge, and available incentives. Learning these details and answering questions for each potential new buyer costs dealers time,” the Electrification Coalition notes in a part of its web site, titled: “EVs and Consumer Choice”.
Among the states with outright bans on direct sales of EVs to shoppers is Connecticut – whereby the Mohegan Tribe’s reservation land is located. On that reservation is Uncasville the place the Mohegan Sun casino complex is positioned.
According to a 2021 (subscriber only) article in “The Day”, the resort “attracts 9 million visitors a year, many of them drawn by the performers who play Mohegan Sun Arena, which opened in 2001. The arena has hosted some 3,000 paid events that have drawn more than 13.5 million guests. Twenty-seven major acts have launched tours at the arena“.
The tribe intends to partner with Elon Musk’s Tesla to open a “state-of-the-art Tesla Electric Vehicle showroom” someday this fall. As the on line casino resort is just not positioned “in Connecticut” however relatively on sovereign tribal soil, state legal guidelines such because the ban on direct EV sales don’t apply there.
In addition to serving as a supply middle for on-line Tesla sales choose ups, there will probably be a full-service showroom contained in the retail middle referred to as The Shops, the place guests can store for vehicles, kick the tires, and even take a look at drive one or buy one to drive off the positioning from the valet space of close by Sky Tower.
Jeff Hamilton, president and common supervisor of Mohegan Sun mentioned, “We’re really excited about this new Tesla EV Showroom opening this fall at Mohegan Sun.
“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.”
Not The First Tesla/Tribal Partnership
In June, the Oneida Nation introduced a partnership with Tesla to open a showroom on the tribe’s sprawling Turning Stone Resort Casino in Upstate New York. Tesla has additionally opened a showroom in New Mexico by way of an settlement with the First Nation of Nambe Pueblo. The tribe operates the Buffalo Thunder Resort Casino close by.
In addition to greater than a dozen subsidiaries within the playing enterprise within the US, the Mohegan Tribal Gaming Authority d/b/a Mohegan Gaming & Entertainment additionally has ventures internationally together with Inspire Integrated Resort Co., Ltd. within the Republic of Korea, MGE Niagara Entertainment Inc. in Ontario (Canada), and MGE Hellinikon B.V. in The Netherlands
Non-gaming property embody about half a dozen franchises within the Jersey Mike’s sandwich chain in addition to the Mohegan Holding Company additionally owns pursuits in sustainable power assets, manufacturing, and digital applied sciences.
Source: Tesla Continues Partnering With Tribal Casinos for Vehicle Showrooms, CDC Gaming Reports, July 26, 2023
