Tesla’s Mohegan Sun deal in Connecticut aggravates auto dealerships: “Evading the law”

Key Points

• 😃 Tesla customers in Connecticut can now purchase their vehicles in the state, thanks to a recent deal with the Mohegan Tribe.
• 🏞️ The deal allows Tesla to build a showroom at the Mohegan Sun, an entertainment destination.
• 🏆 The agreement is a significant win for Tesla, which has faced opposition from organizations like the Connecticut Automotive Retailers Association (CARA) due to its direct sales model.
• 🚗 Connecticut state law requires vehicle makers to sell through dealerships, but Tesla bypassed this challenge by building its showroom on sovereign land owned by the Mohegan Tribe.
• 👍 Governor Ned Lamont generally supports the deal, stating it is within Mohegan Sun’s right as a sovereign nation.
• 😕 Connecticut’s dealerships are not happy with the deal, as they feel Tesla is “evading” state laws.
• 🏢 The upcoming Tesla showroom will be located near the Mohegan Sun’s Tuscany restaurant, offering test drives and vehicle deliveries at the Sky Tower valet.

Tesla customers in Connecticut have long faced challenges acquiring their vehicles due to the company’s direct sales model conflicting with state laws requiring vehicle makers to sell through dealerships. However, a recent deal with the Mohegan Tribe is set to change that.

The Mohegan Tribe has agreed to allow Tesla to build a showroom at the Mohegan Sun, an entertainment destination, providing a unique opportunity for Tesla customers in Connecticut to test drive, purchase, and take delivery of their vehicles within the state.

This deal is a significant win for Tesla, which has faced opposition from organizations like the Connecticut Automotive Retailers Association (CARA) in its previous attempts to support its customers in the state.

By establishing the showroom on Mohegan Tribe land, Tesla can bypass the traditional dealership requirement in Connecticut. Kevin Lowry, the assistant general manager at Mohegan Sun, expressed excitement about the partnership, stating that while they align with many Connecticut laws and regulations by operating on sovereign land, they are not bound by every law and regulation.

Connecticut Governor Ned Lamont also seemed supportive of the deal, recognizing the Mohegan Tribe’s sovereign rights.

However, not everyone is pleased with the agreement. Connecticut dealerships, including Bradley Hoffman of Hoffman Auto Group, have voiced concerns about Tesla “evading” state laws. Despite this, the upcoming Tesla showroom at Mohegan Sun will offer visitors an exceptional experience, with test drives of popular Tesla models available around the resort. Vehicle deliveries will take place at the nearby Sky Tower valet.

With this landmark deal, Tesla is set to expand its presence and provide enhanced accessibility to its electric vehicles for customers in Connecticut, while still navigating the complexities of state dealership laws.