New York Moves To Shutdown Tesla As Political Fury Erupts

- Tesla could lose its right to sell directly to consumers in New York state.
- Lawmakers want to recall five sales licenses previously granted to Tesla.
- Disgust at Elon Musk, not Tesla, is behind the move by Sen. Patricia Fahy.
The state of New York is one of the most pro-electric areas in the US, but its residents could soon find it much harder to buy America’s most popular EVs. A new bill proposes ending Tesla’s license to sell directly in the state, which could mean the brand losing access to its existing showrooms.
New York has for over 10 years outlawed direct selling, demanding all automakers sell through franchised dealers. But when that law passed in 2014 it contained an exemption for Tesla, giving it the right to continue operating five retail outlets it was already selling from. Now lawmakers want to pull those five permits and offer them to other EV companies, and not for anything Tesla has done, but due to the actions of its CEO, Elon Musk.
Related: New York Could End Tesla’s Direct Sales And Musk’s DOGE Drama Is To Blame
New York State Sen. Patricia Fahy (Dem) described Musk to the New York Times as “part of an administration that is killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change.”
“Why should we give [Tesla] a monopoly?” Fahy, the co-sponsor of the bill, asked.
Musk helped bankroll President Trump’s successful bid to return to the White House, and in Fahy’s eyes set back efforts to combat climate change. And the Telsa boss’s controversial job-slashing efficiency drive and push to access IRS information with DOGE has hardly endeared himself to New York’s lawmakers.

In addition to rescinding Tesla’s showroom licenses, and opposing the establishment of a new one at Colonie, Democrats want the state to audit a deal that allowed the automaker to run a plant near Buffalo on a $1 per year lease and receive almost $1 billion in benefits. They want the subsidies returned and for those managing the state and city pension funds to get rid of any investments in Tesla.
If Tesla is forced from its retail stores, buyers would have to travel out of state to get their new cars, though the brand would still maintain a NY presence in the form of showrooms that allow people to see and sit in the company’s EVs but not actually place an order. The five stores that Tesla currently has could be offered to rival brands including Lucid, Rivian and Scout.
