Elon Musk is no stranger to doing things unorthodoxly. Recently, the billionaire has found a loophole, just like its expansion to its company in New York. The CEO will build the new Tesla stores and service centers on Native land.
Tesla is Building on Native Land, Giving Them Access to Sell Directly to Customers
According to the story by Electrek, Tesla is doing this to avoid a US law applicable in certain states. This law prohibits electric vehicle companies from selling directly to consumers.
Tesla is known for selling directly to the public even without going through third-party dealerships, and the company is doing this by building on Native land, where that law doesn't apply. This would allow the EV company to sell directly to the public.
US Law in Certain States Prevents the Sale of EVs to Customers without Any Third-Party Dealership
It was noted that the US law prohibiting the sale of electric vehicles to customers without the help of third-party dealerships comes from an old law designed to protect car dealers. Since dealerships were the only ones that could sell the cars, they would be protected against their own automakers potentially selling their own car.
Recently, it was noted that car dealerships were using the law to prevent automakers without any deals with them from selling direct to the public. This meant companies like Tesla, which never had any third-party franchise dealers.
Tesla Pushed Back in Other Locations as It Also Built on Native Land
Tesla already experienced pushback as it planned to expand from the local dealership association in New York, using that law to try to block its expansion initially. To curb this, the company decided to build on Native land, where the ban didn't apply, as explained in an article by CNY Central.
The company did the same in New Mexico in 2021, where the company opened its first store and service center by partnering with the First Nation Nambe Pueblo. The locations of its first store and service center were inside an old Santa Fe casino.
Read Also: Tesla Cybertruck Faces Setback as Former Executive Joins Rival Rivian
Tesla Made a Deal with Oneida Indian Nation to Build Its First Direct Sales Outlet
As reported by Syracuse news, Tesla has made a deal with Oneida Indian Nation to build its first direct outlet in the state outside the New York City area. It was noted that the location is expected to open in 2025.
The Tesla location was expected to be a 25,000-square-foot room and would be located on land across the International Boxing Hall of Fame at Thruway Exit 34. This was located near Canastota on land owned by the Oneida India Nation.
Building on this location would allow Tesla to expand its presence in New York without trying to convince state legislators to allow them to bypass the law. This would also make the curtails by the local dealership association ineffective.
Once the location has opened, Tesla would not need a middleman to sell to its consumers.
Related Article: Senators Warn Top Twitter Executives Over Data Security Risks Under Elon Musk's Leadership
