New York lawmakers are moving to shut down Elon Musk’s Tesla sales across the EV-friendly state

• Democrats in New York hope to pay a draft law at the state level This can strip the Tesla of its right to sell cars directly to customers in revenge to support the ELON MUSK CEO of the Trump administration. Opportunities are favorable, because the party controls both the legislative and executive branches of the state government. Of more than 172,000 fully electric cars currently registered in New York, every second is Tesla.

New York Democratic lawmakers are trying to get rid of the waiver that allows Tesla to sell cars in friendly EV there in response to the support of the ELON Musk CEO of the Trump administration.

In 2014, the state government in Albani prevented auto companies from exceeding traditional car dealers for sale directly to customers. From the entire auto industry, Tesla was granted the only exemption, which was granted hard in five stores.

Now, government Democrats are wondering about this step.

“Why should we give them a monopoly?” senator Patricia Fahi said, according to a reportNew York TimesSunday.

She called the participant sponsor of a draft law that is currently moving through the two councils of the state legislative council, described as “part of a administration that kills all grant financing for electrical infrastructure and killing wind energy, killing anything that might address climate change.”

New York, which is controlled by the Legislative and Negative Council by Democrats, is one of the hand of EV’s friendly countries throughout America. The government in Albani set a target to reach new car sales by 100 % by 2035 in the state, the fourth largest number of population in the country.

Tesla, whose customers are likely to have to get out of the state to accept the receipt of a car in one of the other delivery centers, is indelible. luck To comment.

Fahi’s bill is the latest repercussions of the bitter fall between the Democratic Party and the CEO of Tesla during the Biden administration. In the context of the inflation after birth, Musk’s policy and combating the union made it a goal for a party looking to reconnect with its working -class supporters.

In response, angry businessman fell a quarter of a billion of his wealth to support the president’s campaign, despite Trump’s long opposition to storing EVS and storing renewable energy that was the distinctive feature of Tesla’s work.

Why not use Tesla merchants to sell cars?

For decades, vehicles such as Chevrolet Silvrado, which were manufactured by General Motors, wholesale, have been distributed to the merchants, who then distinguished them in the price and sold them to make a small profit. These independent retailers have maintained the relationship with the customer at all times, leaving car makers to focus on areas such as engineering and brands.

Thanks to the impact of merchants in their local communities, the traditional fragmented retail market in America prevented car makers from exceeding their distributors for sale directly to consumers. This was not a problem for most car manufacturers in the past, because going directly to consumers would have hurt their margins when cars were mainly representative.

Tesla followed a different approach from the beginning, and avoided independent merchants. Musk realized that cloud computing opened all the new business models available only if the brand has the relationship with the customer and was free to extract their digital file to obtain evidence about what or they want owners.

Its full self -driving software, the basis for the upcoming Robotaxi pilot, will not be possible without drivers share their data over many years to help them improve the artificial intelligence model.

What does this mean for Tesla?

Under the Lahai plan, the exemption from franchise laws can be confiscated in favor of brands such as scouts coming from Rivian, Lucid, Volkswagen, which all depend on a similar sales approach to the consumer.

Lahi now says she is “adjusting” because she is wrong to musk in the past, when she supported Tesla’s original mission to pay sustainable transport.

Empire State is a main market for Tesla. Most EVS tend to sell them in warmer climate such as Southern California, Tixas and Florida, where temperatures are more tolerant with battery ranges. New York is one of the few northern states that revolve around EVS champion – more than 172,000 already on government roads, half Teslas.

If Lahy and its colleagues succeed, the restriction of Tesla’s ability to compete in New York can provide a sensitive blow at a time when the company loses the land in front of Archrival byd.

Last week, Tesla reported the results of the first quarter that revealed a group operation of 2.1 %, the worst in the second quarter of 2019. The basic profitability of its basic work has decreased to its lowest level since the launch of the Yesla model to a trillion dollars in the stock market.

This story was originally shown on Fortune.com

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2025-04-28 12:09:00