The local population of the Nambé Pueblo is under 1700 people, however, the facility is only a half-hour drive from nearby Santa Fe. Albuquerque, the largest city in New Mexico, is a 90 minute drive away. With a combined population of over 600,000 people in the two cities, there should be a sizable potential customer base if people are willing to make the hike.
Tesla has been unrelenting in its push to establish direct sales across the nation. Eliminating third party dealerships that add their own profit margin allows Tesla to keep prices lower. Additionally, it avoids external businesses bearing its branding from potentially damaging its reputation through shady practices or just bad customer service. In pursuit of this goal, the company has been duking it out in the courts for years.
Dealerships have long held power as a lobby group and done much to cement their position in the industry through legislation in many states. Tesla have worked hard to find workarounds wherever possible, but it’s slow going through politics and the courts.
Overall, it’s a win for Tesla and another bruising blow to the dealership model in America. However, while the company may have won this battle, dealerships and their political allies will continue to fight the war.
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