The state’s auto dealers say they will continue to fight against direct-to-consumer sales by vehicle manufacturers, even as Tesla prepares to open its first sales center in Connecticut.
In a long-running debate over whether Tesla should be allowed to sell its vehicles directly to consumers in the state, it was announced Wednesday that the Elon Musk-led electric car-making giant has found a way to skirt state law by opening a sales center on tribal land.
Tesla will be opening a new vehicle showroom, sales and delivery center at the Mohegan Sun casino in Uncasville as part of a “first-of-its-kind” venture.
Mohegan Sun’s Tesla EV Showroom is expected to debut this fall, giving buyers their first chance to purchase the electric vehicles in Connecticut.
Tesla has been trying for several years to make inroads in Connecticut, but has faced stiff opposition from auto dealers. State law forbids motor vehicle manufacturers from selling their products directly to customers, which is the business model Tesla relies on.
Tesla has argued that the law is an unnecessary restriction on consumers, but dealers say the existing law is needed to protect buyers’ interests when recalls or other large-scale issues arise.
Tesla currently has a showroom in Milford, but it can’t sell cars from that location.
In response to Tesla’s planned sales center at Mohegan Sun, Hayden Reynolds, chairman of the Connecticut Automotive Retail Association, said it “is essential to strike a balance between respecting tribal sovereignty and maintaining a level playing field for all car dealerships in Connecticut. We respect the Mohegan Tribe’s sovereignty and the unique circumstance in which they operate their businesses on Tribal land, but we strongly believe that this does not change the discussion about Tesla and other EV manufacturers with direct-to-consumer sales, and we continue to oppose that model. Connecticut’s dealer franchise laws benefit consumers and provide a competitive marketplace.”
According to information from Mohegan, the sales and delivery center will allow people to purchase and pick up Tesla vehicles of their choice, and learn more about the company’s solar and storage offerings.
The showroom, sales and delivery center will be located in The Shops at Mohegan Sun, a 130,000-square-foot, two-story dining and shopping pavilion on the property that connects Casino of the Sky to Casino of the Earth. The facility will be located across from Todd English’s Tuscany restaurant, and vehicle deliveries will take place nearby at the Sky Tower valet. Test drives will be possible around the resort, according to Mohegan.
Tesla will also collaborate with the casino and resort to integrate local talent into its workforce development programs.
