Tesla Expansion in New York to be Built on Native Land to Curb Direct Sale Ban

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Jul 14, 2023 • 2 min read

Urian B.

, Tech Times

06 June 2023, 09:06 pm

Elon Musk has a history of doing things in an unconventional way. The billionaire recently found a loophole to expand his company in New York. The Tesla service centers and stores will be built on Native land by the CEO.

Tesla builds on Native Land and gives them access to sell directly to customers

According to the story of

Electrek

Tesla does this to avoid an US law that is applicable in some states. This law prevents electric vehicle manufacturers from selling directly to customers.

Tesla has a reputation for selling direct to the public, without having to go through third-party dealers. The company does this by building on Native Land, where the law doesn't exist. The EV company could then sell directly to consumers.

The US law that prohibits the sale of electric cars to customers without the assistance of third-party dealers is an old law intended to protect car dealerships. Dealerships would be protected from their own automakers selling their car, since they were the only ones who could sell them.

Recent reports have shown that auto dealers are using the law to stop automakers who do not have any agreements with them, from selling directly to the public. It was companies like Tesla that never had any franchise dealers.

Tesla pushed back in other locations as it also built on native land

Tesla was initially rebuffed by the local New York dealership association, which used this law to stop its expansion. According to an article written by, Tesla decided to build on Native Land, where the law did not apply.

CNY Central

In 2021, the company also opened its first service center and store in New Mexico by partnering up with the First Nation Nambe Pueblo. Its first store and service centre were located in an old Santa Fe Casino.

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Tesla made a deal with Oneida Indian Nation for its first direct sales outlet

As reported by

Syracuse news

Tesla has signed a deal to build its direct outlet outside of the New York City region in Oneida Indian Nation. The location was expected to open by 2025.

The Tesla location would have been a 25,000 square-foot space and be located across from the International Boxing Hall of Fame, at Thruway Exit No. 34. The Oneida India Nation owned the land near Canastota.

Tesla could expand its presence in New York by building on this site, without having to try to convince legislators of the state to let them bypass the law. The local dealer association would be unable to enforce their restrictions.

Tesla will not require a middleman once the store is open to sell directly to consumers.

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