Tesla Faces Complete Shutdown in New York Amid Political Outrage | Carscoops

      New York State Senator Patricia Fahy has proposed a bill that would require Tesla to transition from direct sales to operating through franchised dealers in the state.

      Tesla may potentially lose its ability to sell directly to consumers in New York.

      Lawmakers are looking to revoke five sales licenses that were previously issued to Tesla.

      The motivation behind Senator Patricia Fahy's actions stems from discontent with Elon Musk rather than the company itself.

      Although New York is considered one of the most supportive regions for electric vehicles in the U.S., residents may soon face greater difficulties in purchasing the country’s top-selling EVs. The proposed legislation aims to revoke Tesla’s right to sell directly within the state, which could result in the brand losing its current showrooms.

      For over a decade, New York has prohibited direct sales, requiring all car manufacturers to sell through franchised dealerships. However, when the law was enacted in 2014, it included an exemption for Tesla, permitting the company to continue operating five retail locations. Now, lawmakers aim to withdraw those five licenses and allocate them to other electric vehicle manufacturers, motivated not by any actions taken by Tesla, but rather by the behavior of its CEO, Elon Musk.

      Senator Patricia Fahy (Democrat) referred to Musk in a statement to the New York Times, describing him as “part of an administration that is eliminating all grant funding for electric vehicle infrastructure, damaging wind energy, and neglecting initiatives to combat climate change.”

      “Why should we allow [Tesla] to have a monopoly?” Fahy, who co-sponsored the bill, questioned.

      Musk's financial support for President Trump’s presidential campaign has, in Fahy’s view, hindered climate change efforts. Furthermore, Musk's contentious efficiency measures that led to job cuts and his attempts to access IRS information through Dogecoin have not won favor with New York lawmakers.

      In addition to revoking Tesla’s showroom licenses and opposing a new facility in Colonie, Democrats are pushing for an audit of a deal that enabled the company to operate a plant near Buffalo on a $1 annual lease, alongside nearly $1 billion in incentives. They seek to reclaim these subsidies and urge the management of state and city pension funds to divest any investments in Tesla.

      Should Tesla be forced to leave its retail locations, customers would need to travel out of state to purchase their vehicles, although the brand would still have a presence in New York through showrooms that allow potential buyers to view and try out the company’s EVs, without being able to place orders. The five stores currently owned by Tesla could potentially be reassigned to competing brands like Lucid, Rivian, and Scout.