New York lawmakers are pushing to revoke Tesla’s exemption to sell electric vehicles directly to consumers, citing concerns that it gives the company an unfair advantage. The state has laws prohibiting direct sales of EVs without third-party dealerships, a relic of outdated regulations meant to protect car dealers from their own automakers.
Tesla obtained an exception to these laws in 2018 and has since opened several stores in New York, despite facing opposition from local dealerships. Now, Senator Patricia Fahy is leading the effort to remove Tesla’s exemption, citing her regret over supporting the company in the past.
Fahy’s change of heart stems from concerns that Tesla’s direct sales model could hinder competition from other EV manufacturers like Rivian and Lucid. She believes that these companies need equal access to sell their vehicles directly to consumers, rather than relying on franchise dealerships.
Under Fahy’s plan, Tesla would forfeit its five licenses by 2026, which could be redistributed to rival electric vehicle manufacturers. This move aims to promote competition in the EV market and ensure that all automakers have equal opportunities to sell their products directly to consumers.
Source: https://electrek.co/2025/04/28/ny-lawmakers-shut-down-teslas-stores