Tesla is facing backlash in New York as state lawmakers are pushing to revoke the special deal that allows the company to sell cars directly to customers without using traditional dealerships. This exemption, granted in 2014, has allowed Tesla to operate five stores in New York while other carmakers are required to go through franchises.
The push to strip Tesla of this privilege comes as State Senator Patricia Fahy, a Democrat representing Albany, has shifted her stance on the company. Previously a strong supporter of Tesla’s growth in New York, Fahy’s views changed after Donald Trump’s election and Elon Musk’s increasing involvement in the new administration.
Fahy expressed concerns about Musk’s role in an administration that she believes is hindering progress in addressing climate change. She stated, “Why should we give them a monopoly?” as she introduced a proposal to revoke Tesla’s licenses by 2026, potentially opening up opportunities for other electric vehicle makers like Rivian, Lucid, or Scout Motors.
The battle against Tesla has extended beyond the State Capitol, with Fahy joining a protest against a planned Tesla facility in Colonie, near Albany. At a local Planning Board meeting, protestors criticized Musk’s reputation, although town officials emphasized that the meeting was solely for reviewing project designs.
While the focus is on New York, other states like Washington, Florida, and Illinois have also been exploring legislation regarding how electric vehicles are sold. The Electrification Coalition has reported ongoing debates in these states.
Some lawmakers argue that targeting Tesla based on political views sets a dangerous precedent. State Senator Jacob Ashby, a Republican from Colonie, believes that “government should not be picking winners and losers on this,” and suggests that “political disdain” may be influencing the efforts against Tesla.
Tesla has not publicly commented on the proposed bill in New York. Musk briefly mentioned online that it was “improper for lawmakers to target a single person or company,” but later deleted the post. Additionally, the $1 billion incentive deal that Tesla received to build a plant near Buffalo is also under scrutiny, with lawmakers calling for an audit to potentially reclaim some of those benefits if issues are found.
New York Governor Kathy Hochul’s office has stated that she will review Fahy’s bill if it passes through both houses of the Legislature. The outcome of this legislative battle will likely have significant implications for Tesla’s operations in New York and could impact the future of electric vehicle sales in the state.