Tesla’s presence in New York’s electric vehicle (EV) market could soon face a significant setback as lawmakers are pushing forward legislation targeting the automaker’s direct-to-consumer sales model.
The proposed bill, spearheaded by State Senator Patricia Fahy and Assemblymember Gabriella Romero, would revoke Tesla’s permits for its five existing sales locations by mid-2026, effectively removing the company from New York’s in-person retail market.
The authors of the bill claim that Tesla’s hold on New York’s direct sales permits — granted through a 2014 compromise — is limiting consumer choice and stifling competition. The state currently caps direct-sale EV locations at five, all of which belong to Tesla. Under the new proposal, those permits would be reissued to other zero-emission vehicle (ZEV) manufacturers, opening the door for the likes Rivian and Lucid to establish a retail presence in the state.
Senator Fahy, who previously supported expanding direct sales for all EV makers, cited Elon Musk’s political ties and role in the Trump administration’s Department of Government Efficiency (DOGE) as a key reason for her change in stance.
“No matter what we do, we’ve got to take this from Elon Musk,” Fahy said. (via Politico)
Tesla pioneered the direct sales model to bypass traditional franchised dealerships — a strategy that helped it become the leading EV seller in both New York and the broader U.S. market. However, opponents argue that Tesla’s advantage, secured over a decade ago, is now acting as a barrier for new competitors trying to enter the EV space.
Assemblymember Bobby Carroll, who is drafting a bill to eliminate direct EV sales entirely, argues that the franchise system protects small businesses.
