Tesla has cleverly gotten around a New Mexico law that prevented them from selling and servicing their cars in the state. Up until now, New Mexico Tesla owners have had to drive out-of-state to get their cars serviced. There were also no Tesla stores in the state. Why? Because, like a number of other US states, New Mexico has a ban on direct car sales.
The ban stems from an old law used to protect car dealers in case automakers decided to start supplying vehicles directly to consumers. However, Tesla’s core business model revolves around selling directly to the consumer, with no middle-man car dealer involved. Up until now, Tesla has had no presence in New Mexico. They tried to enter the state in 2019 with the aid of a number of favorable legislators but were blocked from doing so when local car dealer associations campaigned against them.
However, it now appears Tesla has found a loophole. By partnering with a Native American tribe, Nambé Pueblo, Tesla was able to build on their land – which is not subject to state law. Hence Tesla could open a new 7,000-square-foot service center and store inside the remains of a former casino north of Santa Fe.
Interestingly, Tesla could potentially use this loophole in a number of other states that have a ban on direct car sales. It just seems it’s a matter of finding the right tribal location, and then reaching a separate agreement with the tribe in question.
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Business cover will be included automatically (when your policy is purchased through our website) for you and your spouse or partner if you have had a civil partnership ceremony and live at the same address, unless either of you hold one of the following occupations:
- Motor Trade
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In these cases the vehicle may only be used for Social, Domestic and Pleasure (SDP) purposes.
In addition we cannot offer insurance where the vehicle is taken Airside (near to aircraft) or is used for paid driving tuition or where the policy holder or their spouse/partner is a foreign diplomat with immunity.
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Please note: business cover is required where your occupation requires you or your spouse/partner to travel to more than one permanent place of work. You will need business cover if you or your spouse/partner has more than one occupation.
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