- New York lawmakers are attempting to stop Tesla from selling directly to buyers in the state.
- Tesla’s permits to sell directly could be offered to other EV firms, including Rivian.
- The move by Democrat lawmakers is a response to CEO Elon Musk’s DOGE activities.
Some Tesla owners disgusted at CEO Elon Musk’s DOGE work for the US government, are selling their EVs, and some non-Tesla drivers are vandalizing the automaker’s EVs and property to show their displeasure. Now New York lawmakers are planning their own attack on Musk by attempting to remove Tesla’s right to sell directly to customers in the state.
Democrat senators are pushing to rescind permits granted in 2014 that allow Tesla to sell directly to consumers. Like several other US states, New York normally forbids direct sales, requiring automakers to sell through dealers. Even other EV makers such as Lucid and Rivian, which sell directly in other states, are not allowed to in New York.
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State Sen. Pat Fahy is leading the charge to rip up Tesla’s right to operate at five locations, but the five permits wouldn’t disappear altogether. Instead, they could be offered to rival brands, though some lawmakers and dealer groups believe the permits should be axed because they give too much power to a small number of people.
A similar bill designed to end Tesla’s direct-sales freedoms has been introduced in Washington state, and a bill proposing sales limits be raised for direct-to-consumer outlets has stalled, Politico reports. And none of this is rooted in hatred for Tesla itself, but for the man at the head of the company.
Since President Trump moved back into the White House, Musk has focused his energy on the newly created Department of Government Efficiency (DOGE), whose federal cost-cutting drive has left thousands of people unemployed. He has also caused outrage by attempting to win DOGE employees access to sensitive tax information of millions of Americans.
And restricting Tesla’s sales isn’t the only way lawmakers could hit Musk in the pocket. Fahy – an EV advocate – and other senators have written to New York State Comptroller Thomas DiNapoli, asking him to sell off Tesla shares owned by the New York State pension fund.