New York legislators move to close Elon Musk’s Tesla sales throughout the EV state

• New York Democrats expect to promote a bill throughout the state This could strip Tesla from her right to sell cars directly to clients in retaliation for the support of CEO Elon Musk in the Trump administration. The possibilities are favorable, as the party controls both the legislative and executive branches of the state government. Of the more than 172,000 completely electric vehicles currently registered in New York, every second is a Tesla.

Democratic legislators in New York try to eliminate a resignation that allows Tesla To sell cars in the state promoting EVs, in retaliation for the support of the Trump administration, Elon Musk’s CEO.

In 2014, the State Government of Albany banned automobile manufacturers to overcome conventional vehicle distributors to sell directly to customers. From all the car industry, Tesla was granted the only exemption, which allowed her grandfather in five stores.

State Democrats now question this movement.

“Why should we give them a monopoly?” State Senator Patricia Fhyhe saidAccording to a reportThe New York TimesSunday.

Co-patrociner of a bill that is currently moving to the two houses in the state legislature, Fahy called Musk “ part of an administration that kills all funding for the grant for the infrastructure of electric vehicles, killing wind energy, killing anything that can approach climate change ”.

New York, whose legislature and executive are controlled by Democrats, is one of the A good handful of EV -favorable states Through America. The Government in Albany has set a goal to achieve the sales of 100% zero vehicle vehicles for 2035 in Spain, the fourth largest in the country by population.

Tesla, whose customers would probably be forced to leave the state to accept the reception of a car in one of the other delivery centers, could not be reached Fortune For comment.

The Fahy bill is the last impact of the bitter fall between the Democratic Party and the CEO of Tesla during the administration of Biden. During the wave of post-paid inflation, richness and anti-union policy of Musk made it a goal for a party that sought to reconnect with his working class supporters.

In response, the enraged entrepreneur left a quarter of a billion of his own fortune Support the president’s campaignDespite Trump’s Long -duration Opposition to the EVs and to store renewable energy that have been the badge of Tesla’s business.

Why Tesla does not use distributors to sell cars?

For decades vehicles like a silverado chevrolet made by General engines They have been wholesale of distributors, who later marked them in price and sold them for a reduced benefit. These independent retailers maintained their relationship with the client at all times, leaving the manufacturers of vehicles focused on areas such as engineering and the brand.

Thanks to the influence of the distributors of their local communities, the very fragmented car retail market in America has traditionally banned vehicle manufacturers who passed their distributors to sell directly to consumers. This had not been a problem for most vehicle manufacturers in the past, as going directly to consumers would have hurt their margins when cars were mainly analog.

Tesla adopted a different approach from the outset, and missed independent distributors completely. Musk acknowledged that the Cloud Computing opened all new business models only available if a brand owned the customer relationship and was free to undermine their digital profile for tracks about what owners could or wish.

All its full driving software, the foundation for its nextPilot robotaxiIt would not be possible without drivers sharing their data for many years to help them refine their AI model.

What does this mean for Tesla?

Under Lahy’s plan, the exemption of franchise laws could be lost in favor of brands such as Rivian, Lucid and Volkswagen, next Searchwhich are based on a direct sales approach to the similar consumer.

Now Lahy says he is “changing” because he was wrong about Musk in the past, when he had supported the original Tesla mission to advance sustainable transport.

The Empire State is a key market for Tesla. Most EVs are usually sold in warmer climates such as southern California, Texas and Florida, where temperatures are more forgiven by battery intervals. New York is one of the few northern states to camp EVS …More than 172,000 They are already on the state roads and half are teslas.

If Lahy and her colleagues are successful, restrict Tesla’s ability to compete in New York could give a sensitive blow at a time when the company is losing ground into file ByD.

Last week, TeslainformedThe results of the first quarter that revealed an operational margin of the group of 2.1%, its worst since the second quarter of 2019. The profitability underlying their main vehicle business fell to their lowest level from the launch of the Y model and, for the first time, Tesla in a dollars company on the stock market.

This story originally presented to Fortune.com

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