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Tesla’s Mohegan Sun deal in Connecticut aggravates auto dealerships: “Evading the law”
For the longest time, Tesla customers in Connecticut could only acquire their vehicles by going out of state. But with the EV maker’s recent deal with the Mohegan Tribe to build a showroom at the Mohegan Sun, an entertainment destination, Tesla customers in Connecticut would soon be able to test drive, purchase, and take delivery of their vehicles in the state.
The deal was a huge victory for Tesla, considering that the EV maker has met numerous challenges in Connecticut in the past. Tesla has attempted to launch several initiatives to support its customers in the state over the years, but the company’s efforts have consistently met opposition from organizations like the Connecticut Automotive Retailers Association (CARA).
As noted in a report from WTNH, state law in Connecticut requires vehicle makers to sell their products through dealerships. Newer carmakers like Tesla, however, adopt a direct sales model, which means that they do not sell their vehicles through franchised dealers. This has resulted in companies like Tesla facing opposition when they try to set up shop in Connecticut.
Tesla was able to get around these challenges by building its showroom on the Mohegan Tribe’s land. Kevin Lowry, the assistant general manager at Mohegan Sun, was optimistic about the deal. “I’m extremely excited. You know Tesla’s brand is one-of-a-kind. While we align with many Connecticut laws and regulations by operating on sovereign land, we don’t necessarily have to abide by every law and regulation,” Lowry said.
Gov. Ned Lamont generally seemed supportive of the deal. “I think it’s within Mohegan Sun’s right to do it. They are a sovereign nation,” he said.
Quite unsurprisingly, the deal has not been received warmly by Connecticut’s dealerships. In a comment, Bradley Hoffman, the co-chairman of Hoffman Auto Group, explained that the group does not really have an issue with the Mohegan Sun. Its issues lie with Tesla, as the EV maker is “evading” the law.
“Our issue is with Tesla, and them frankly evading the law that is in Connecticut right now,” Hoffman said.
The executive noted that the Hoffman Auto Group does not believe dealerships in the state will be affected as they already sell over 65 types of electric cars in Connecticut, but he is concerned about consumers not having any dealership support. “Also, that is a check-and-balance with the manufacturers themselves,” Hoffman said.
The upcoming Tesla showroom will be situated opposite Todd English’s Tuscany restaurant. Vehicle deliveries will take place at the Sky Tower valet, which is located nearby. Visitors will also be able to test drive popular Tesla models around the resort.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
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Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
