Is New York turning against Tesla? Lawmakers push to shut down Elon Musk’s dealerships

New York lawmakers are set to close Tesla's dealerships, a major blow to the electric car giant and its billionaire CEO, Elon Musk, as per a report.

The bill, proposed by New York State Senator Patricia Fahy and other lawmakers, aims to eliminate a waiver that lets Tesla have five direct-to-consumer dealerships in the state, as per DailyBeast. If it passes, Tesla would have to sell its cars through traditional dealer franchises like other automakers, according to the report.

New York State Senator Patricia Fahy's Shift in Stance

Fahy, a former supporter of electric car companies such as Tesla, is now at the forefront of an effort to curtail the company's activities. In March, Fahy said when she first introduced the bill against Tesla, “No matter what we do, we’ve got to take this from Elon Musk,” as quoted in the report. She added, “He’s part of an effort to go backwards,” quoted DailyBeast.


The bill's main intention is to compel Tesla to relinquish its existing licenses and distribute them to other electric vehicle manufacturers, such as Rivian, Scout Motors, and Lucid, reported DailyBeast.

Political Backlash Against Elon Musk

The opposition arises from Musk's political alignment, specifically after joining US president Donald Trump's administration and his work with the Department of Government Efficiency (DOGE), according to the report. Fahy, as well as most other Democratic legislators, has grown more critical of Musk and his corporation since his work with Trump after the 2025 election, as per DailyBeast.

Fahy pointed out that 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,” quoted DailyBeast.

She even went on to ask, “Why should we give them a monopoly?”, and mentioned that this bill was her “making amends” with her previous support of the company, as per the report.

Fahy argued, “The bottom line is, Tesla has lost their right to promote these when they’re part of an administration that wants to go backwards. Elon Musk was handed a privilege here,” quoted DailyBeast.

What’s Next for Tesla in New York?

DailyBeast reported that the bill is now in the hands of the Senate and Assembly finance committees and will be considered once a budget agreement is reached.

FAQs

What does the bill aim to achieve?
The bill seeks to redistribute Tesla’s licenses to other electric vehicle manufacturers, such as Rivian, Lucid, and Scout Motors, as per DailyBeast.

Why has Patricia Fahy changed her stance on Tesla?
Fahy, a former supporter of Tesla, has grown critical of the company, after Tesla CEO Elon Musk started supporting Trump and is even part of the administration as he heads DOGE and is a special adviser, as per the report.