by Legislators in New York are trying to stop Tesla from selling cars directly to consumers in the state.
Tesla’s direct sales licenses might be transferred to other electric car manufacturers, including Rivian.
The step by Democrat legislators is in response to the activities of CEO Elon Musk in the cryptocurrency arena, specifically with DOGE.
Some Tesla owners are outraged by CEO Elon Musk’s actions in the cryptocurrency sector, selling their electric vehicles as well as some company assets to express their dissatisfaction. Now, New York legislators are preparing their own strike against Musk, trying to deprive Tesla of the right to sell cars directly to consumers in the state.
Democrat senators aim to revoke the licenses issued in 2014, which allow Tesla to sell products directly to consumers. Similar to several other US states, New York usually prohibits direct sales, requiring automakers to sell through dealers.
Even other electric vehicle manufacturers like Rivian, which sell products directly in other states, are not allowed to do so in New York.
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Senator Pat Fahy is leading the process to nullify Tesla’s right to operate at five locations, but these five licenses will not disappear entirely. Instead, they may be transferred to competing brands, although some legislators and dealer groups believe the licenses should be canceled, as they provide too much power to a small number of individuals.
A similar bill aimed at ending Tesla’s freedom of direct sales has already been introduced in the state of Washington, and a bill proposing to increase the sales caps in direct-to-consumer points is at a standstill. None of this is based on hatred of Tesla itself, but only towards the company’s head.
After the President returned to the White House, Musk focused his energy on the newly created Department of Government Efficiency (DOGE), whose federal cost containment has led to job losses for thousands of people. He has also provoked outrage by attempting to give DOGE employees access to confidential tax information of millions of Americans.
And limiting Tesla’s sales is not the only way legislators can hit Musk’s pocket. Fahy – a defender of electric vehicles – and other senators have written to New York State Comptroller Thomas DiNapoli, asking him to sell Tesla shares owned by New York State’s pension fund.
