New York state lawmakers are attempting to revoke Tesla’s exemption that allows it to sell vehicles directly to consumers, rather than through third-party dealerships. This move is part of an effort to level the playing field for other electric vehicle manufacturers like Rivian and Lucid.
Several U.S. states have laws prohibiting direct-to-consumer sales of vehicles, originally designed to protect car dealerships from unfair competition by automakers. Tesla has long fought against these restrictions, securing exemptions in some states, including New York.
Senator Patricia Fahy, who previously supported Tesla, now leads the initiative to revoke Tesla’s waiver. She argues that granting this privilege exclusively to Tesla creates an unfair advantage. Under her proposal, Tesla’s five licenses would be redistributed to other EV manufacturers by 2026.
Critics suggest that CEO Elon Musk’s political affiliations and perceived efforts to hinder EV adoption have influenced this decision. However, supporters of the change emphasize the importance of allowing all new EV manufacturers to operate on equal footing.
— new from Electrek