The New York City government is currently considering whether to put an end to Tesla sales. A sale that cuts out the middleman, the car dealer.
New York authorities are considering banning Tesla from selling cars directly to customers.
Electric car manufacturer Tesla is facing a lot of political opposition in the state of New York, where lawmakers are working to remove the company's right to sell directly to consumers.
Dissatisfaction with Tesla's CEO, Elon Musk, is reportedly one of the biggest reasons why the proposal is now on politicians' radar.
Democratic senators are pushing to revoke the permits Tesla received in 2014. These permits allow Tesla to sell directly, bypassing car dealers, something that is generally not allowed in the United States.
In general, New York law prohibits direct sales by automakers, which must normally sell through a dealer network.
Several states may ban Tesla from selling cars
This means that even other electric car manufacturers, like Lucid and Rivian, that sell directly in other states, are not permitted to do so in New York.
State Senator Pat Fahy is one of the leading forces behind the proposal that would revoke Tesla's license to sell cars on its own.
However, the fact that Tesla may/may not lose the right to sell cars in New York does not mean that the method will become completely illegal in New York.
Instead, politicians are considering giving existing permits to Tesla's competitors. However, independent car dealers have argued that this type of sales should be banned altogether.
The motivation behind the proposal in New York, according to sources, is linked to Elon Musk's actions, including his work for the US government.
Since Trump moved back into the White House, Musk has focused his energy on the newly created Department of Government Efficiency (DOGE), according to the source.
Here they are working to cut federal costs. Something that has already meant that thousands of positions have been cut. Even charging stations have been removed. Read more about it here.
Musk has also faced criticism for attempting to provide DOGE employees with access to sensitive tax information on millions of Americans.
It is these actions that are allegedly giving politicians the nerve to go straight after Tesla's 11-year-old preferential treatment.
A similar bill that would stop Tesla's direct sales has also emerged in Washington state. At the same time, a proposal to raise the limits on when direct sales should be allowed has stalled.
This is what Politico writes.
Limiting Tesla's sales opportunities is not the only method lawmakers can resort to to put pressure on the car brand.
Senator Fahy – who otherwise describes himself as an advocate for electric cars – and other senators have approached New York State Comptroller Thomas DiNapoli.
They are asking him to sell the Tesla shares held by the state pension fund. At the same time, some Tesla owners are reacting to Elon Musk's activities by selling their electric cars.
Others have resorted to vandalism. Something that could now cost a Mexican-born man a fine of as much as 7 million kroner. Tesla's so-called Sentry Mode has caught him scratching a Model X with a knife. Read this and many other exciting stories on Boosted.dk every day!
