New Mexico: Tesla 2, Rivian 0. (Service Centers)

[Zorg]

At this point, Rivian is going to focus its dollars where they can get max returns. They probably are chasing the biggest markets and then the easiest ones to set up a SC. NM is neither. I am sure they'll get to it though. It definitely sucks if you're there.

Sponsored

 

[COdogman]

Glad to hear that! How long do you think it will take Rivian to get these laws changed? I think it will be 3-5 years minimum, and I'd rather not wait that long. NM has a part time legislature that doesn't actually get paid a salary. It's pretty backwards for sure, things take a long time to change here, and I'd rather go around the legislature than wait that long.

No one is blaming Rivian for the legal situation, but I do blame them for failing to respond to it in the obvious and legal way that Tesla has. It's not playing games, it's smart business decisions. It's not that different from opening a service center in a state that is close enough to service/sell vehicles in a neighboring state that doesn't allow it.

Why would they want to just write off an entire state the size of NM indefinitely, when they could put a service center right smack in the middle of it with no lobbying at all?

It very much is playing games when the majority of states don’t have such requirements. Rivian can open service and delivery facilities without any problems In those places and maximize their effort without being restricted by such silly laws. Plus, what do we know about the partnership the tribes made with Tesla? Is it exclusive? What else did Tesla have to do to make this happen? It may not be as easy as it appears on the surface.

Rivian can’t get the laws changed themselves, which is the point they are making by sending customers in those states communications explaining their stance on this. The dealer associations have enough legislators bought and paid for that it isn’t something they will ever get done on their own. People who live there need to make enough noise about how crooked this arrangement is and either force them to change or vote them out.

 

[RoadRunner]

Technically neither tesla Service centre is in NM. Just ask the Santa Ana Pueblo whose land it is.

That's *exactly the point* and why this arrangement works. It's Tribal land, and yet entirely within the state, and close to major population centers. Because it's Tribal land, outdated and protectionist state laws do not apply. So they can sell direct and service vehicles to those who live in the state. The tribe gets jobs, tax revenue, etc. It's good for the tribes, good for consumers in the state, and good for the manufacturer. It also helps speed up the transition to EV's and reduces the political power of the legacy dealers. Everybody wins, except the dealers. I just don't get why anyone would be opposed to this.

 

[Denver_Paulie]

At this point, Rivian is going to focus its dollars where they can get max returns. They probably are chasing the biggest markets and then the easiest ones to set up a SC. NM is neither. I am sure they'll get to it though. It definitely sucks if you're there.

Exactly.

Start ups do not invest heavily in a state that has two million people in it and ranks 45th in per capita income at $51k per year.

I am a big fan of New Mexico, but the Rivian folks have a business to get off the ground and need to spend money where it makes the most sense. Basically, that is in places where more people live and where people make more money.

 

[ads75]

That's *exactly the point* and why this arrangement works. It's Tribal land, and yet entirely within the state, and close to major population centers. Because it's Tribal land, outdated and protectionist state laws do not apply. So they can sell direct and service vehicles to those who live in the state. The tribe gets jobs, tax revenue, etc. It's good for the tribes, good for consumers in the state, and good for the manufacturer. It also helps speed up the transition to EV's and reduces the political power of the legacy dealers. Everybody wins, except the dealers. I just don't get why anyone would be opposed to this.

How do you know the Indian Tribes don’t have an agreement with Tesla to not allow other manufacturers to open service centers on their land?

 

[RoadRunner]

Exactly.

Start ups do not invest heavily in a state that has two million people in it and ranks 45th in per capita income at $51k per year.

I am a big fan of New Mexico, but the Rivian folks have a business to get off the ground and need to spend money where it makes the most sense. Basically, that is in places where more people live and where people make more money.

I don't think that's it though. Look at Idaho for example:

Boise - service center "coming soon".
Idaho: Population: 1.94 million. Per capita Income Ranking: 44th in the nation at $56,560 per year.
Boise metro area population: 765K. Boise Median income: $68K

New Mexio: Population 2.1 million.
Median household income in Santa Fe is about $62K. ABQ is about $56K. Total population of the two metro areas (which are only a 1 hour drive apart): 955K+584K = 1.54 million people.

There is lots of wealth in the state, as well as lots of poverty, and the wealth is concentrated in Santa Fe+ABQ areas. So the median income does not tell the whole story. We have lots of homes worth $1-5 million. Plenty of luxury cars, SUV's and expensive trucks driving around. Santa Fe has enough wealth/sales to support Lexus, Subaru, Ford, Chevy, GMC, Chrysler/Jeep/Ram, Hyundai/Kia, Toyota dealers. ABQ has most of those plus Audi, Porshe, Mercedes, Jaguar/Land Rover, Volvo, Lincoln, etc. There are 2 Toyota dealers and 3 Ford dealers in ABQ, plus the ones in Santa Fe, and now the 2 Tesla stores. Literally all of Rivian's competition is here and apparently doing just fine.

I do wonder if they just don't have a lot of reservations here in NM compared to other states. Anyway, I guess I've beat this horse enough so I'll let it go for now...

 

[RoadRunner]

How do you know the Indian Tribes don’t have an agreement with Tesla to not allow other manufacturers to open service centers on their land?

Each tribe is its own independent entity, and there are a bunch of them here, each with their own laws and their own land and their own ability to make deals with whoever they want. It may well be that the two tribes Tesla reached deals with each made an exclusive agreement with Tesla, but that would in no way prevent another nearby tribe from reaching a deal with Rivian.

 

[Count Orlok]

Rivian doesn't think NM is adventurous enough to be creative when it comes to a SC or to the RAN. QED

 

[Denver_Paulie]

I don't think that's it though. Look at Idaho for example:

Boise - service center "coming soon".
Idaho: Population: 1.94 million. Per capita Income Ranking: 44th in the nation at $56,560 per year.
Boise metro area population: 765K. Boise Median income: $68K

New Mexio: Population 2.1 million.
Median household income in Santa Fe is about $62K. ABQ is about $56K. Total population of the two metro areas (which are only a 1 hour drive apart): 955K+584K = 1.54 million people.

There is lots of wealth in the state, as well as lots of poverty, and the wealth is concentrated in Santa Fe+ABQ areas. So the median income does not tell the whole story. We have lots of homes worth $1-5 million. Plenty of luxury cars, SUV's and expensive trucks driving around. Santa Fe has enough wealth/sales to support Lexus, Subaru, Ford, Chevy, GMC, Chrysler/Jeep/Ram, Hyundai/Kia, Toyota dealers. ABQ has most of those plus Audi, Porshe, Mercedes, Jaguar/Land Rover, Volvo, Lincoln, etc. There are 2 Toyota dealers and 3 Ford dealers in ABQ, plus the ones in Santa Fe, and now the 2 Tesla stores. Literally all of Rivian's competition is here and apparently doing just fine.

I do wonder if they just don't have a lot of reservations here in NM compared to other states. Anyway, I guess I've beat this horse enough so I'll let it go for now...

You are preaching to the choir! I hope it happens, but don't see it being set up for a very long time.

On a personal note, I pick up my R1T this Friday and am leaving on Saturday morning down to do the Cumbres and Toltec railroad trip this weekend. I love the Cumbres Pass area since you can find all kinds of beauty and little to no crowds.

 

[RoadRunner]

Rivian doesn't think NM is adventurous enough to be creative when it comes to a SC or to the RAN. QED

Ha! Actually it looks more like Rivian is not adventurous enough for NM. They just can't handle the level of adventure we have around here!

 

[RoadRunner]

You are preaching to the choir! I hope it happens, but don't see it being set up for a very long time.

On a personal note, I pick up my R1T this Friday and am leaving on Saturday morning down to do the Cumbres and Toltec railroad trip this weekend. I love the Cumbres Pass area since you can find all kinds of beauty and little to no crowds.

I agree, it's not looking like it will happen anytime soon.

That's awesome, I'm jealous and have a great trip in your new Rivian! It is a gorgeous area, we've done some camping and a yurt ski trip there over the last few years.

 

[bbonkk]

Tesla now has 2 stores/service centers in New Mexico, both on Tribal land. The first is near Santa Fe and the latest one is near Albuquerque. Meanwhile Rivian refuses to deliver vehicles in NM and seemingly has no plans to open a service center here.

https://www.abqjournal.com/2603347/its-here-tesla-opens-second-nm-location.html

SANTA ANA PUEBLO — About eight months after it was first announced, the new Tesla store located in Santa Ana Pueblo is now open for business.

Thursday’s grand opening for the 35,000-square-foot facility at 1300 Jemez Canyon Dam was attended by tribal and local officials, and included a tour and test drives for the roughly 200 people in attendance.

The Tesla facility, which sits near the Santa Ana Star Casino Hotel, is the second in New Mexico. In 2021, the electric vehicle manufacturer led by Elon Musk opened its first store in the state at a former casino just north of Santa Fe in the Nambé Pueblo.

“Now that we have our facility up and ready to open (its) doors, it’s going to provide new opportunities for us not only here within the pueblo but in our surrounding communities,” Nathan Garcia, the governor of Santa Ana Pueblo, said. “It’s an honor to be a part of this that’s going to change people’s lives.”

But the new facility just north of Albuquerque is the first in the state built from the ground up, Tesla officials said. It features a sales and delivery center, a vehicle showroom, customer lounge, 19 service bays and a parts and storage area.


New Mexico’s two Tesla facilities sit on tribal lands because of a state law that, despite attempts to change it, prohibits vehicle manufacturers from selling directly to consumers rather than through a franchise dealership. Because they are on tribal lands, sales of vehicles from those facilities are not subject to state law.

Officials say the new facility will create up to 25 jobs at full capacity. Additionally, tribal members now have direct access to training programs with Tesla — a move that pushes the local workforce toward clean energy jobs.

Jim Wills of Tamaya Ventures, the business arm of Santa Ana Pueblo, said the Tesla partnership and new facility falls in line with the pueblo’s belief that development is a generational process and doesn’t occur “through a narrow, immediate lens.”

“I think this partnership … really maps to that,” Wills said. “We have talented young people who are getting incredible exposure and skills. We have a pathway now for talented young adults to follow their passion and train. And then, of course, we have this incredible facility.”

The new facility comes as the country has seen an increasing interest in electric vehicles.

Companies such as Ford Motor Co. and General Motors Co. have plans to ramp up the sale of electric vehicles over the next decade. And last year, auto makers sold more than 800,000 electric vehicles — nearly 6% of all vehicles sold — in the U.S., according to figures from Motor Intelligence.

Locally, the state has made plans to expand the number of charging stations across New Mexico. Sarah Cottrell Propst, cabinet secretary for the New Mexico Energy, Minerals and Natural Resources Department, said Thursday the state has already completed more than $7 million in EV charging projects — and plans to leverage millions of dollars more in federal funding toward additional projects.

Specifically, a plan released last year by Gov. Michelle Lujan Grisham’s administration calls for EV charging stations to be installed at 50-mile intervals — if not closer — along New Mexico’s three interstate roadways.

“As things stand today, we have 230 charging stations publicly available across New Mexico ranging from level one chargers … to level three, the fast chargers,” she said. “But with the plans on the table and expected federal funding, we can see a future in which EV charging stations are available roughly every 50 miles around our state with higher density in the more populated areas.”

Mark Hawes, the president of the Tesla Owners Club of New Mexico and an owner of two Tesla vehicles himself, estimates there are around 2,000 to 3,000 Tesla drivers in the state. But he said he expects that number to grow with the new Tesla facility.

“I think (this facility) will increase the sales of Teslas and their visibility,” Hawes said. “We are trying to help foster the adoption of electric vehicles and clean energy — that’s the ultimate goal.”

 

[bbonkk]

Ha! Actually it looks more like Rivian is not adventurous enough for NM. They just can't handle the level of adventure we have around here!

Here’s some adventure in the glorious town of Rio Rancho, NM at the city “sand dune test track”

 

[RoadRunner]

Tesla is now partnering with another tribe to bypass state law, this time in upstate NY:
https://www.torquenews.com/video/tesla-brings-native-land-loophole-new-york-turning-problem-success

Sponsored