Tesla Finds Genius Way To Open Stores Despite Direct Sales Bans

By Kevin Armstrong
Tesla has found an interesting loophole to get around direct sale laws
Tesla has found an interesting loophole to get around direct sale laws
Tesla

Tesla has engineered a brilliant workaround to tackle the direct sales ban instituted in several US states. This ingenious move involves partnering with Native American tribes to establish showrooms on tribal land, allowing Tesla to navigate prohibitive sales laws.

Partnering with Native American Tribes

Spearheading this innovative strategy, Tesla has announced plans to open a spacious 25,000-square-foot showroom on land owned by the Oneida Indian Nation in Madison County, New York. Set to be operational by 2025, this will be Tesla’s first direct sales facility outside the New York City area, offering a new hub for customers in upstate New York.

This savvy approach isn't new for the company. In 2021, Tesla made similar arrangements with the Nambe Pueblo tribe in New Mexico, opening a showroom and service center on tribal land to sidestep the state's restrictive sales law. This partnership benefited Tesla and provided an economic boost for the tribe.

Benefiting Both Parties

The collaboration with the Oneida Indian Nation offers mutual advantages. The agreement will facilitate Tesla's expansion, whilst the Nation will benefit from the showroom’s construction and ongoing operations, offering employment opportunities to local tribal members and residents. Tesla's committed to fostering local talent via its workforce development programs, providing members of the Oneida Indian Nation with potential career paths within the company.

Tesla's strategic move is more than just an inventive legal sidestep — it's a powerful statement in favor of sustainable transportation. Through the partnership, the company aims to increase access to electric vehicles and charging infrastructure for Nation Members and residents of Upstate New York, contributing to broader environmental objectives.

Tesla’s Stance on Direct Sales

Tesla's CEO, Elon Musk, has made it clear that the company prefers to sell directly to consumers, bypassing third-party dealerships. However, many states, including New York, have stringent laws that compel vehicle manufacturers to sell via dealerships. Tesla's partnership with Native American tribes serves as a compelling workaround, demonstrating the company's determination to bring its electric vehicles to as many customers as possible.

While this strategy may not be applicable everywhere, it demonstrates Tesla's ability to identify and exploit legal loopholes that work in its favor. It’s a testament to the company's relentless drive for growth, even in the face of regulatory challenges. This move sets a precedent for other manufacturers facing similar obstacles, offering a novel approach to tackle such constraints.

Tesla Cybertruck to Receive Charging Improvements in Upcoming Update

By Karan Singh
Not a Tesla App

Former Tesla VP of Powertrain and Energy Drew Baglino previously mentioned that Cybertruck would be receiving charging improvements soon.

Wes Morrill, Tesla’s Cybertruck lead engineer, recently reposted Baglino’s comments on the charge speed update on June 16th and mentioned that it would be coming soon via OTA.

Charging Improvements

The 4680 cell has seen some difficulties in its charge curve, similar to Tesla’s other vehicles that have been deployed with the 4680. Tesla has alluded to difficulties in the manufacturing curve previously, and also with engineering improvements to the new cell standard, and eventually stopped manufacturing the Model Y with the 4680 cells.

However, this is the first time that Tesla has begun to deploy major improvements to the 4680 cell. It appears the improvements will allow up to 154 miles to be recovered in 15 minutes, which is approximately a 30% improvement to current charge rates.

We’re hoping that these improvements to the 4680 will also translate to older Model Y vehicles that have 4680 cells, which will be key to the owners of these vehicles. 4680 production is currently mainly focused on Powerwall, Megapack, and Cybertruck – with Semi not using 4680 yet.

Tesla Model 3 Long Range Now Eligible for $7.5K Tax Credit

By Karan Singh
Not a Tesla App

In the US, the Model 3 Long Range has now become fully eligible for the $7,500 federal tax credit for EVs.

Federal Tax Credit

The federal tax credit is up to $7,500 USD off at the point of sale, which applies to EVs with batteries originating from the United States. The Model 3 Performance was launched with the EV tax credit, which meant that until now, it was cheaper to purchase than the Model 3 Long Range.

Interestingly, after this change, the Model 3 Long Range is only $1,000 USD more expensive than the Model 3 Rear Wheel Drive, as the RWD model is not eligible for the credit. The LFP batteries in the RWD model are from CATL in China, and thus mark it as ineligible.

At $40,000 USD, the Model 3 Long Range is now an even better deal than before – and is nearly $7,500 less (the amount of the credit), than the average new car in the United States.

Canadian EV Credits

In Canada, Tesla dropped the Model 3 RWD price by $1,000 CAD, in response to the province of  British Colombia reducing the upper limit of their EV credit MSRP range. This means that the Model 3 RWD is the only Tesla vehicle that is covered under the new BC rebate – which is one of the few provincial rebates still left standing.

Sadly, as a result of this change, and due to a weird classification gimmick, the Model Y is considered a sedan by the Government of BC and is completely ineligible for the additional rebates – but the $5,000 federal EV rebate still applies.

Tesla vehicles accounted for 80% of federal EV rebate applications in Canada in 2023, marking a net increase since last year at 60%.

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