Tesla doesn't sell its cars through dealership franchises. It uses its own company run stores, like Apple. Dealerships don't like this. And now New York State auto dealers are backing a bill that would make it illegal to register the cars in the Empire State.

As Green Car Reports reports, two bills (A07844 and S05725) in the assembly are being backed by the state auto dealers. The bills require that cars can only be sold and registered when sold by a third party, which would be a dealer or a private seller. A car company cannot sell its own cars directly.

Tesla sells those cars directly and is the only manufacturer to use a business model like that.

There are limited ways for company owned dealers top exist, and it looks like the legislation limits those dealers to one year before a third party must take over.


It will be interesting to see if the bill holds water and if it passes. Tesla uses New York based suppliers to build the cars and has dozens of employees across the state in stores that are already in business. Elon Musk has taken notice too:

Just heard that NY auto dealers are sneaking through a bill to shut down Tesla in NY. Please call your state senator!

— Elon Musk (@elonmusk) June 21, 2013

NY auto dealers are trying to ram the bill thru quickly while no one is looking. Please call now http://t.co/q4fvn9zOHk

— Elon Musk (@elonmusk) June 21, 2013

Note fake reference to franchisors in NY Senate Bill http://t.co/0LNtWpM4wO and NY Assembly Bill http://t.co/kp5GTZiu7R

— Elon Musk (@elonmusk) June 21, 2013