Tesla partners with N.M. tribes to bypass sales ban

Tesla is getting around a ban on direct-to-consumer vehicle sales in New Mexico by partnering with American Indian tribes.

The electric vehicle maker has one store in the state and began construction of a second, much larger location last month. That store, which is closer to the state's largest cities, is expected to open in May 2023 in Santa Ana Pueblo, according to the Albuquerque Journal.

"This just opens the door," Santa Ana Gov. Joey Sanchez told the newspaper. "This is just planting the seed into the future."

Santa Ana and Nambé Pueblo, where Tesla opened its first New Mexico store in 2021, are recognized as sovereign nations and thus don't have to follow state laws.

Sanchez said Tesla, which previously leased warehouse space for a mobile repair unit in Santa Ana, approached the pueblo last year to discuss opening a store on its land. A group of tribal members will be trained by Tesla to work as service technicians, though the store is expected to also employ people from outside the pueblo.

Although efforts by some lawmakers to throw out New Mexico's ban on direct sales have failed, the state legislature this year passed a bill that allows consumers to buy vehicles on tribal land without being double taxed.

"This wasn't an easy road to bring the Tesla project to the pueblo," said Glenn Tenorio, chairman of Tamaya Ventures, the business arm of Santa Ana's Tamaya tribe.

"But the fruits of our labor have become a reality."