By Aliyah Couillard, Staff Writer
For years, in N.Y., Tesla has been given exemptions from a law preventing automakers from selling their cars directly to consumers. The “anti-direct sale law” exists to protect third-party dealerships from unfair competition with automakers.
The law is often considered outdated, as some companies, including Tesla, don’t sell their vehicles from third-party dealerships.
Tesla instead has showrooms where consumers can purchase Tesla vehicles. Service for Teslas is also often handled in these showrooms.
These laws are in place in multiple states, and Tesla has had varying degrees of success in trying to open showrooms in some of these states. However, Tesla has been successful in N.Y. and has been granted exceptions to open five showrooms.
In the past, N.Y. lawmakers were supportive of Tesla and even allowed the company to sign a one-dollar per year lease to open a Tesla plant in Buffalo, NY.
However, now N.Y. lawmakers are working on a bill that would remove Tesla’s exemption from the anti-direct sale law. This, in effect, would force all in-person Tesla showrooms in N.Y to close.
If passed, this would be a massive blow to Tesla, whose sales have plummeted in the first few months of 2025. The company has been the subject of widespread protests, and in some instances, dealerships and Tesla vehicles have been vandalized.
N.Y. state senator Patricia Fahy is one of the lawmakers leading this effort. Fahey, who introduced the bill due to her and other N.Y. lawmakers’ disapproval of Musk’s cost-cutting efforts and support of the Trump administration, said 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.”
Fahey also said that Musk has “lost their right to promote these when they’re part of an administration that wants to go backwards.”
Senior finance major Jake Shaw disagrees with the proposed bill against Tesla.
“(The bill) seems entirely politically motivated as a way to hurt Tesla as a company. They aren’t even masking it as a way to protect car dealerships, they basically are saying that because we don’t like Elon Musk, we’re going to try to shut down Tesla showrooms,” Shaw said. “It’s dangerous because it will set a precedent that lawmakers can target people’s businesses because of their politics.”
However, senior business administration major Saul Leon sees merit in the proposed bill. “The state was already doing them a favor by giving them these exemptions,” Leon said. “DOGE has tried to cut funding for electric cars and charging stations, so why should we give Tesla exemptions to help them sell their electric cars? I think it’s hypocritical to hurt the electric vehicle industry and also expect the government to grant your own electric vehicle company special privileges.”
In response to the effort by lawmakers to revoke Tesla’s exemptions from the anti-direct sale law, Musk posted on X, “It’s improper for lawmakers to target a single person or company.”
Fahey has proposed giving these exemptions instead to other electric car companies like Rivian, which also doesn’t sell their cars through third-party dealerships.
Since the proposed bill would also affect Tesla service centers, N.Y. Tesla drivers would also have difficulty with repairs for their vehicles. Typical body shops often have trouble working on Teslas because parts are hard to purchase, and employees of these shops are often unfamiliar with working on Tesla vehicles.
The proposed bill has not been passed yet and is controversial. It will not only affect Tesla as a company but also Tesla owners in the state. However, if passed, Governor Kathy Hochul said she would review the bill.
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