New York lawmakers are moving to shut down Elon Musk’s Tesla sales across the EV-friendly state

• New York Democrats expects to push through a statewide bill That could undo Tesla of its right to sell cars directly to customers in revenge for the support of CEO Elon Musk in the Trump administration. The opportunities are interesting, as the party controls both branches and executive branches of the state government. Of the more than 172,000 full electrical vehicles currently registered in New York, every second is a Tesla.

Democratic lawmakers in New York attempt to remove a departure that allows Tesla to sell cars in the state of EV-friendly there in revenge for supporting CEO Elon Musk of the Trump administration.

In 2014, the State Government in Albany banned automakers from a conventional car dealer to sell to customers directly. Outside the entire car industry, Tesla was given a single exemption, allowing it to be a grandfather in five stores.

Today, state democrats are talking about that move.

“Why would we give them a monopoly?” State Senator Patricia FahySaysAccording to a reportThe New York TimesOn Sunday.

Co-sponsor of a bill that is currently moving in both state legislature homes, Fahy called the Musk “part of an administration that kills all funding for funding for electrical vehicle infrastructure, killing air energy, killing anything that can meet climate change.”

New York, whose legislature and executive are both controlled by Democrats, is one of Some states of ev-friendly Across America. The government in Albany has set a target to hit a 100% zero-release of new vehicle sales by 2035 in the state, the fourth largest in the country's population.

Tesla, whose customers are likely to be forced to exit the state to accept receiving a car in one of the other delivery centers, is out of reach of Fate For comment.

Fahy's bill was the latest repercussion from a bitter collapse between the Democratic Party and CEO of Tesla during the Biden Management. In the course of the post-sandmic inflation wave, the wealth of Musk and anti-union politics has been the target for a party seeking to reunite with supporters of the working class.

In response, the angry businessman dropped a billion billion of his own fate to support the president's campaign, despite Trump's long -standing opposition to EVs and a changing energy storage that has been a sign of Tesla's business.

Why don't Tesla use dealers to sell cars?

For decades of vehicles such as a Chevrolet Silverado made by General Motors have been wholesale to sellers, who then marked them prices and sold them for a small income. Independent retailers maintain customer relationships all the time, leaving carmakers focusing on areas such as engineering and bonding.

Thanks to the influence of entrepreneurs in their local communities, the heavy fragments of automotive retail market that traditionally prohibit manufacturers of shares manufacturers to sell directly to consumers. This has not been an issue for most car manufacturers in the past, as going straight to consumers will hurt their margins when cars are primarily analog.

Tesla took a different approach from the beginning, completely escaped with independent entrepreneurs. Musk acknowledged that cloud computing opened all new business models only available if a brand owned customer relationship and free to mine their digital profile for clues about what the owners need or want.

The full software driving itself, the foundation for the upcoming robotaxi pilot, would not have been possible if the drivers had not shared their data for many years to help it refine the AI ​​model.

What does this mean for Tesla?

Under Lahy's plan, the exemption from franchise laws can be ruined in favor of brands such as Rivian, Lucid and Volkswagen's upcoming scout, all of which are dependent on a similar approach to selling direct-to-consumer.

Today Lahy says she has “made changes” for being wrong about Musk in the past, when she supported Tesla's original mission to advance sustainable transportation.

Empire State is a major market for Tesla. Most EVs tend to be sold in warmer climates such as Southern California, Texas and Florida, where temperatures are more likely to forgive battery ranges. New York is one of the few northern states to champion the EVs –More than 172,000 are on state roads, and half are teslas.

If Lahy and his colleagues succeed, Tesla's ability to compete with New York can deliver a sensitive blow at a time when the company losing land In archrival byd.

Last week, Tesla reported the results of the first-quarter that announced a group operating margin of 2.1%, its worst since the second quarter of 2019. The underlying profitability of the car's main business has fallen to its lowest level since the launch of Model Y first became a Tesla at a trillion dollar company in the stock market.

This story was originally featured on Fortune.com