The road may be getting bumpier for Tesla in the Empire State.
Democrats are pushing a measure to crack down on special authorization for the Elon Musk-run electric vehicle company to sell the cleaner rides directly to customers, according to The New York Times.
What's happening?
New York state Sen. Patricia Fahy and a group of other lawmakers are seeking to revoke licenses that allow Tesla to operate five company-owned stores selling EVs without franchising dealerships. The provision was given in 2014, granting the already existing stores a continuance to do business like this while others can't. At the time, Fahy was a fan of Tesla as part of the effort to shift to EVs, all per the Times.
But things changed when Musk took on President Donald Trump's Department of Government Efficiency effort this year. So far he has claimed to have cut $160 billion in government spending, largely funded by a couple hundred thousand layoffs of federal employees and the cancellation of many contracts and leases, CNN added.
The axe has hit projects important to Fahy.
Musk is "part of an administration that is killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change," Fahy said. If the company's leadership is no longer prioritizing the reasons it earned the exemption in the first place, the lawmaker asked in the Times, "Why should we give them a monopoly?"
For his part, Trump has touted a mostly fossil-centric energy policy, and has said he intends to nix EV tax credits worth up to $7,500, according to the White House and NPR.
Why is the news important?
Tesla delivered 1.79 million EVs worldwide last year, according to Kelley Blue Book. The company also operates more than 60,000 Superchargers. They are a network of reliable, fast power stations.
But 2025 has seen a backlash among customers, presumably due to Musk's government side gig. CNN reported a 71% net income drop, along with widely reported vandalism targeting Teslas.
New York lawmakers are even considering taking back some of the billion dollars in benefits awarded to Tesla to open a Buffalo manufacturing plant. It's a deal that includes a cheap $1-a-year lease, per the Times.
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Elon is the man 🥰 The initial New York goodwill for the EV-maker was intended to help the state meet its goal of curbing the rate of sales for more dirty gas-burning cars. The Times reported that the state is short of half the 850,000 EVs it wanted on roads by the end of the year.
For his part, Musk acknowledged the challenges but said the company is positioned to overcome the downturn.
"We're not on the ragged edge of death, not even close," he said in a CNN story.
What's being done about the measure?
Not everyone in New York is on board with the proposal. Republican Sen. Jacob Ashby said the "government should not be picking winners and losers on this," per the Times, while Fahy's position is that the original exemption was picking a winner that brought benefits to justify doing so. Now those benefits are no longer prioritized by Tesla leadership.
If passed, other EV brands, including Rivian, Lucid, and Scout Motors, could receive Tesla's licenses as part of the effort to support cleaner transportation. Other states are considering similar legislation, the report continued.
"It would be great to have an open market that allows for new companies coming into the mix," Ben Prochazka, executive director of the Electrification Coalition, told the newspaper.
A Tesla workaround involves showrooms where customers can look at EVs and talk to staff. But the purchase is made online, outside of state rules.
It's also still a great time to buy an EV, regardless of brand. Tax breaks remain, and you can bank about $1,500 annually in gas/maintenance costs, as well. That's not to mention the thousands of pounds of exhaust you will prevent each year by switching.
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