CANASTOTA – The Oneida Indian Nation has long used its independent status for economic development, from early casino construction on tribal land to tax-free cigarettes and gasoline.
Now it offers an alternative solution to the laws that have stymied the Tesla company’s push to sell its electric cars directly to consumers without going through a third-party franchise dealer.
By 2025, the Oneidas hope to host a Tesla showroom at Exit 34 of the Thruway near Canastota as part of a larger retail plaza development on tribal property. The showroom will be leased to Tesla. The plaza will be west of Oneida’s main property, the Turning Stone Casino and Verona Resort.
Until the new showroom is completed, buyers will be able to pick up their cars at Turning Stone.
Under pressure from the state’s influential auto dealers, lawmakers nearly a decade ago rejected the concept of allowing direct sales of autos without a franchise as Tesla was ramping up its direct sales model nationally.
Currently, there are a handful of Tesla-owned direct sales outlets in the state, with the closest to the Capitol region being in Westchester County. Upstate, there’s also one near Rochester. They were allowed as part of a compromise reached in the Legislature.
In addition, Tesla maintains a showroom in Latham where consumers can test drive electric vehicles. They can also service Teslas there.
But to order a Tesla, consumers must go online and pick up at the nearest store.
Because the Oneidas are exempt from laws prohibiting the direct sale of cars, however, they can have a traditional showroom where customers can eventually pick up their cars. The exhibition hall will have an area of 25,000 square meters.
Those plans have their roots in 2013, when the Oneidas gained an additional measure of independence in an agreement between the tribe, New York State and Madison County. This ended years of disputes and legal action over land claims, taxes and other matters.
At the same time, groups like the New York State Automobile Dealers Association began rallying political support to roll back legislation that would allow the direct sales of cars to consumers, which Tesla is pioneering.
They have managed to stall these efforts since then, maintaining the traditional system in which individual franchisees buy cars from manufacturers and sell them to the public.
Car dealers say it protects jobs and ensures communities have a local contact to service the cars they sell. There has also been pressure to keep the system, primarily in the New York City metro area, from unions, as many dealer service departments are unionized.
On the other hand, environmental organizations have generally supported Tesla as they support the move toward zero-emission electric cars. Gov. Kathy Hochul has created regulations that say after 2035, all new cars will be electric or other zero-emission vehicles.
Two other electric vehicle manufacturers, Rivian and Lucid, have also pushed, unsuccessfully, to allow direct sales in New York.
Executives with the Oneidas and Tesla praised the new showroom layout in prepared statements.
“We are proud to expand access to electric vehicles in upstate New York,” said Oneida Indian Nation Representative and Oneida Nation Enterprises CEO Ray Halbritter. “This initiative and partnership with Tesla aligns with the nation’s commitment to environmental stewardship, continued diversification of our businesses, and warm hospitality to all who enter our ancestral lands.”
“Tesla’s partnership with the Oneida Indian Nation is an opportunity to make electric vehicles and charging infrastructure more accessible to Nation members and New York State residents,” said Rohan Patel, vice president of public policy and business development at Tesla.
Tesla buyers later this month will be able to pick up the electric vehicles they ordered online at Turning Stone, located at Exit 33 of the Thruway.
rkarlin@timesunion.com 518 454 5758 @RickKarlinTU
