New York lawmakers have introduced controversial legislation that could fundamentally alter Tesla’s business model in the state by revoking the electric vehicle manufacturer’s ability to sell cars directly to consumers. The bill, introduced by State Senator Pat Fahy, would terminate Tesla’s permits for its five direct-sales locations by July 2026.
The proposed legislation maintains the existing cap of five licenses for electric vehicle manufacturers statewide but would force Tesla to compete with newer EV makers like Rivian and Lucid for these limited permits.
The motivation behind this legislative push appears to be connected to concerns about Tesla CEO Elon Musk. Lawmakers have cited what they describe as “massive issues” with Musk as partial justification for the proposed changes to Tesla’s sales model in New York.
This targeting of Tesla’s direct-sales approach comes at a time when the company already faces increasing competition in the electric vehicle market, both from established automakers and emerging EV startups.
While the bill’s passage remains uncertain, it represents a significant potential disruption for Tesla’s operations in New York. Current Tesla owners and prospective buyers in the state may want to contact their local representatives to express their views on the proposed legislation.
The timing of this move raises questions about whether other states might follow New York’s lead in reevaluating Tesla’s sales model permissions that bypass traditional dealership networks.
Tesla’s ability to maintain its direct-to-consumer sales approach in New York may now depend on whether it can effectively rally support against a bill that could drive it out of one of the nation’s largest automotive markets.
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