Elon Musk is facing a growing political opposition in the United States, with the proposed bill in progress in the State of New York which could limit its control on the electric car market. A series of laws, sponsored by Senator Patricia Fahy, aims to revoke the special permit that allows Tesla to sell vehicles directly to consumers, without going through third dealers. This change could radically alter competitiveness in the electric car market, with a redistribution of Tesla dealers’ licenses to rivals such as Rivian, Scout Motors and Lucid.

The initiative represents a significant turning point for Fahy, who in the past had been a supporter of the growth of Tesla’s presence in New York state. At the beginning, the senator saw in the enhancement of electric vehicles a way to contribute to the ambitious objectives of sustainability of his state. However, after a series of political developments and environmental concerns, Fahy became one of the strongest criticisms in Tesla. In an interview in March, he said that his proposal was not only a bureaucratic measure, but a necessary correction of what he considers a harmful monopoly. The conflict does not only concern cars, but a growing political dissonance regarding the role of Musk, who has increasingly associated his name with controversial political positions. His alignment with the Trump administration and his position in the Department for Government’s efficiency (Doge) have fueled the frustration among the progressives, which accuse Musk of supporting a government that is dismantling environmental regulations and reducing funds for the infrastructure of electric cars.

Tesla firmly responded to the proposal, accusing legislators of pursuing a political agenda against him and the company. Musk removed a post on social media in which he criticized the decision, but the wave of indignation against him did not subside. The protests against Tesla have increased, with attacks on its showrooms and fires to its cars. In addition, the financial data underwent a serious blow: the sales collapsed and the profits drastically decreased by 71% in the first quarter of 2025.

The introduction of this legislative proposal marks a radical change in Tesla’s public perception. In the past, the company was seen as a lighthouse of innovation in the renewable energy sector, but now it is facing accusations of excessive economic power and controversial political alignments. Senator Fahy said that Tesla has lost the right to promote her vehicles in New York, claiming that a company that is part of a “regressive” administration does not deserve to continue operating without rules. By adding a further layer to the matter, the bill is bringing out a wider division between those who want to protect industry and those who see Musk’s growing influence as a threat to progress in the renewable energy sector.

If the proposal passes, Tesla will find himself having to deal with a drastic reduction of his direct presence in the state of New York. For the company, this could mean a brake on its ability to effectively sell its vehicles, forcing it to depend on traditional dealers, a model that Musk has always refused. This move could open the door to new competitors such as Rivian, Scout Motors and Lucid, who could take advantage of the situation to expand their presence in the electric car market in New York, an area of ​​strategic importance.

For Tesla, the immediate risk is significant. The loss of the possibility of selling directly to consumers in New York could drastically reduce its market share, while competing car manufacturers could earn land thanks to the system of traditional dealers. Furthermore, the growing competition from other electrical vehicles producers only intensify the pressure. The innovation that Tesla had in its arsenal, such as the direct sale and the strong image of the brand, is now threatened.

The idea of ​​targeted legislation in Tesla could create a worrying precedent for other technological companies. Critics claim that this type of legislative action risks discouraging technological entrepreneurs from doing business in states that seem hostile to innovation. Fahy’s proposal is therefore arousing debates also on how politics can negatively influence the panorama of business. If the project becomes law, it could have long -term repercussions not only on the electric cars market, but also on the future of innovation policies in the United States.

The situation is now in the hands of the Senate of New York, which will examine the proposal in the next few days. If the bill is approved, it could mark a new phase for Tesla, its competitors and the electric vehicle industry in general. Rivian, Lucid and Scout Motors are ready to capitalize on a potential fall of Tesla, but also risk being in a complex battle against political forces that could try to rebalance the industry. The next phase for Tesla could be decisive to define its future position in the market.