Albany, New York – Lawmakers in New York are taking steps to revoke Tesla’s operation of five dealerships in the state, marking a significant shift in the political landscape surrounding electric vehicle sales. State Senator Patricia Fahy, at the forefront of this initiative, is advocating for a legislative change that would compel Tesla to transition to a conventional dealer franchise model.
Fahy’s proposal aims to eliminate the current waiver that permits Tesla to sell its vehicles directly to consumers. Instead, she advocates for reallocating these licenses to other electric vehicle manufacturers such as Rivian, Scout Motors, and Lucid. “We need to ensure that no one entity monopolizes the market, particularly when it’s tied to a political environment that undermines progress,” she stated during a recent discussion about the bill.
Once a supporter of Tesla’s expansion in New York, Fahy expressed her disillusionment with the company’s alignment with political figures she believes are detrimental to environmental initiatives. Echoing concerns expressed by other Democratic leaders, she criticized Musk for his association with the Trump administration, which she claims has hampered funding for sustainable energy projects, including electric vehicle infrastructure.
Musk responded to this growing backlash through social media, asserting that targeting specific individuals or companies is inappropriate. However, public sentiment against his business practices has intensified, leading to protests both nationally and internationally. Instances of vandalism against Tesla vehicles and dealerships have been reported, alongside a significant drop in sales and a staggering 71 percent decline in profits in the first quarter of 2025.
In April, Fahy participated in a protest in Colonie against plans for a new Tesla showroom and charging station, emphasizing that maintaining such facilities is incompatible with advocating for meaningful climate change solutions. “Tesla has lost its privilege to promote itself as a leader in this space when it aligns itself with a backward-looking agenda,” she remarked.
The legislation now awaits review by the finance committees of both the Senate and Assembly and will be considered as part of broader budget discussions. Governor Kathy Hochul’s office indicated that she would assess the bill if it successfully passes both chambers of the legislature.
As tensions rise over Tesla’s clout in the electric vehicle market and its leadership’s political affiliations, the outcome of this proposed legislation could set a precedent for how electric cars are sold and managed in New York and possibly beyond.