A proposed law that would have eliminated Tesla’s ability to sell cars in New York state has died on the vine, after lawmakers adjourned their legislative session without taking any action on the bill.
The bills, introduced in both the lower house and state Senate, would make it illegal for an auto maker to operate a dealership in the state, and any current licenses would be ineligible for renewal, save for those issues prior to July 1, 2006, which would be grandfathered in. Tesla has faced various legislative battles in Virginia, North Carolina, Texas, Massachusetts, and Minnesota and has so far succeeded only in Minnesota.
Tesla would have had to close their three stores and two service centers in New York if the bill passed. Lee Zeldin, a Long Island Republican who sponsored the bill in the upper house, reportedly proposed a separate measure to make an exception for Tesla, echoing a “compromise” from Mark Scheinberg, the head of the Greater New York Auto Dealers Association. Scheinberg told Automotive News that he had offered to extend the grandfathering date, but Tesla refused. Even so, he denied trying to put them out of business, since, after all, Tesla could still establish a franchised dealer network.
According to AN, Tesla denied ever receiving the compromise – and even if they had, they would have rejected it.