Tesla to open Mohegan Sun showroom, evading state law banning direct vehicle sales

Tesla (NASDAQ:TSLA) has found a way to circumvent Connecticut state law that has prevented it from selling its electric vehicles directly to consumers ”“ it is opening a showroom at Mohegan Sun, operating on Sovereign Tribal land.

The Tesla Sales & Delivery Center is scheduled to open this fall in The Shops at Mohegan Sun. Consumers will be able to directly purchase the company”™s Model Y, Model 3 and Model S vehicles and learn about Tesla”™s solar and storage products.

“We”™re really excited about this new Tesla EV Showroom opening this fall at Mohegan Sun,” said Jeff Hamilton, president and general manager of 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, each of which are core goals of Mohegan Sun and the Mohegan Tribe.”

The Connecticut Franchise Act prevents the direct sale of automobiles from manufacturers to consumers. Tesla had operated a “gallery” in Greenwich that enabled prospective buyers to look at, test drive and later order a Tesla over the phone or the internet for delivery out of state. However, the Greenwich venue was closed in March 2019 following a December 2018 ruling by Superior Court Judge Joseph Shortall that supported a Connecticut Department of Motor Vehicles”™ claim that Tesla had been illegally selling vehicles from that site.

The company later began leasing cars from its Milford service station, but drivers interested in buying the vehicles would need to handle those transactions online or out of state. Several attempts by Tesla to influence legislators into changing state law were unsuccessful.