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Legislators in New York are taking steps to dismantle Elon Musk’s Tesla dealerships, marking a significant challenge for the prominent entrepreneur.
Senator Patricia Fahy, along with other lawmakers, is advocating for the removal of a waiver that currently allows Tesla to operate five physical dealerships in the state. The proposed change would require Tesla to engage in sales through traditional dealer franchises, as reported by The New York Times.
“We must take action against Elon Musk,” Fahy stated in March when she first brought forth the legislation targeting Tesla. “He represents a movement that is regressive.”
The senator is eager for the company to forfeit its licenses, suggesting that they should be distributed to other electric vehicle (EV) manufacturers like Rivian, Scout Motors, and Lucid.
Initially an advocate for allowing Tesla to establish in-person locations in New York, Fahy believed that increasing EV sales would contribute to reducing emissions statewide.
However, her support appears to have waned following the 2025 elections when Musk aligned himself with former President Trump, leading Fahy and other Democratic officials to reconsider their positions on the company.
Fahy expressed concerns about Musk’s influence, claiming he is “part of an administration that undermines funding for electric vehicle infrastructure, wind energy, and any initiatives that tackle climate change.”
“Why should we permit a monopoly?” she questioned, highlighting that the bill is part of her attempt to rectify her previous endorsements of Tesla.
In response to Fahy’s efforts to eliminate his dealerships, Musk made remarks on social media in March, later deleting the post, which stated that targeting a single individual or enterprise was inappropriate for legislators.
The rising discontent against Musk, alongside protests against his leadership and the structures associated with his ventures, has fueled both national and international scrutiny.
Recently, reports have indicated escalating incidents of vandalism and arson targeting Tesla cars and dealerships. Additionally, the company has faced a significant drop in sales, with a staggering 71% decrease in profits reported in the first quarter of 2025.
Fahy took an active role in opposing Tesla’s expansion efforts, participating in protests against the company’s plans to open a sizable 30,000-square-foot showroom and charging station in Colonie, New York, earlier in April.
In her words, “The truth is, Tesla has forfeited their chance to promote such developments while being part of a movement that seeks to reverse progress.” She asserted that Musk was granted privileges that now appear unjustifiable.
The proposed measure currently awaits deliberation in the Senate and Assembly finance committees, with further consideration expected once a budget consensus is achieved.
A representative for New York Governor Kathy Hochul indicated that the governor would review the legislation if it passes through both legislative chambers.
Source
www.yahoo.com