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Tesla finds a loophole to bypass the direct sales ban in New Mexico, USA
Tesla doubled down on its plans to build sales and service centers on tribal lands, taking advantage of New Mexico’s direct sales ban.
There is a very old ban in some states in the United States that requires car companies to sell electric vehicles through third-party dealers. It is designed to protect car dealers from the threat of automaker supply, but it is used by current dealers to prevent never-ending Automakers that have partnerships with third-party dealers, like Tesla, sell their cars to the public, even if it's a level playing field.
IT Home understands that Tesla’s business is not all over the United States, and Tesla has not yet established formal business contacts in New Mexico.
In 2019, Tesla tried to push a new law in the state with the help of some lawmakers, but a partnership of local auto dealer associations pushed the other side to abandon the idea.
Then Tesla found an interesting loophole after all, their first California store and service center was in an old casino north of Santa Fe, through a store in partnership with the Nambé Pueblo Nation, owned by It is a storefront opened on tribal land.
What's interesting is that Tesla seems to be happy with this operation, and it has now doubled down on the exploit and decided to open a new Tesla Center in New Mexico as a result.
Tesla will once again build a factory on tribal land, this time in partnership with Santa Ana Pueblo, near Albuquerque, so Tesla can move into the city and provide services.
The irony is that those who are hurt, the lawmakers who support the state's ban on direct sales, are applauding Tesla's trip to tribal lands to build a new Tesla center.
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