Tesla is under fire in New York as state lawmakers move to strip the company of a special deal that allows it to sell cars directly to customers without using traditional dealerships.
According to the New York Times, State Senator Patricia Fahy, a Democrat representing Albany, was once a strong supporter of Tesla’s efforts to grow in New York. But things changed after Donald Trump’s election and Elon Musk’s growing role in the new administration.
“Maybe I’m making amends,” Fahy said when asked about her shift in stance. She added that Musk is now “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 them a monopoly?”
Fahy and other lawmakers want to revoke Tesla’s 2014 exemption that let it operate five stores in New York, while other carmakers still have to go through franchises. Under her new proposal, Tesla would lose those licenses by 2026, with the spots possibly going to other electric vehicle makers like Rivian, Lucid, or Scout Motors.
The fight has spilled beyond the State Capitol. Fahy recently joined a protest against a planned Tesla facility in Colonie, near Albany. At a local Planning Board meeting, protestors attacked Musk’s reputation, though town officials reminded them the meeting was only about reviewing project designs.
Criticism of Tesla isn’t limited to New York. Other states, like Washington, Florida, and Illinois, have also debated laws about how electric vehicles are sold, according to the Electrification Coalition.
Some leaders argue the state should not punish Tesla because of political views. “Government should not be picking winners and losers on this,” said State Senator Jacob Ashby, a Republican from Colonie. He claimed “political disdain” was influencing the effort.
Tesla hasn’t publicly commented on the New York bill. Musk did briefly post online that it was “improper for lawmakers to target a single person or company,” but later deleted the post.
Meanwhile, a $1 billion incentive deal Tesla received to build a plant near Buffalo is also under scrutiny. Lawmakers are pushing for an audit that could allow the state to take back some of those benefits if issues are found.
New York Governor Kathy Hochul’s office said she would review Fahy’s bill if it passes both houses of the Legislature.
