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4h ago

New York Legislators Propose Bill to Close Tesla Dealerships, Redistribute Licenses

The legislation, introduced by State Senator Patricia Fahy, targets Tesla's monopoly in New York and reflects growing backlash against Elon Musk's political role.

New York State senator Patricia Fahy is hoping to eliminate Tesla's ability to sell cars to local customers.
Cars drive by a Tesla dealership in New York City's Red Hook neighborhood on August 7, 2018.

Overview

  • State Senator Patricia Fahy introduced a bill to close Tesla's five in-person dealerships in New York and redistribute their licenses to competitor EV makers like Rivian, Scout Motors, and Lucid.
  • The proposed legislation marks a sharp reversal by Fahy and other Democrats who previously supported Tesla's presence in the state to promote electric vehicle adoption.
  • New York Governor Kathy Hochul is reportedly open to considering the bill if it clears the state's legislative chambers.
  • Tesla's first-quarter profits dropped 71% year-over-year, falling to $409 million, as the company faces declining sales, protests, and investor concerns over Musk's divided focus.
  • Elon Musk announced he will dedicate more time to Tesla starting in May, following criticism over his involvement with the Trump administration's Department of Government Efficiency.