Elon Musk is facing pushback from New York lawmakers who have switched gears and pledged to shut down his five Tesla dealerships in the state. The very same state Democrats who sided with Musk and his environmentally-friendly vehicles just a few years ago have turned on him amid his ongoing work with DOGE and Trump.

Now, amid heightened tensions, plummeting stocks and global protests against his Tesla brand, New York State Senator Patricia Fahy has introduced a bill which would deal yet another blow to the world’s richest man. ‘No matter what we do, we’ve got to take this from Elon Musk,’ Fahy said in March about his right to own dealerships in the Empire State. ‘He’s part of an effort to go backwards.’

Fahy was initially one of Musk’s biggest champions when he sought a waiver which allowed him to operate five in-person dealerships in the state. She had argued that bricks and mortar Tesla dealerships would increase EV sales as liberals were looking to cut emissions and boost cleaner energy. Musk’s company was granted enormous relief to operate a plant near Buffalo when lawmakers allowed Tesla to sign a $1-a-year lease – a benefit worth about $1billion. But an audit of the agreement could give the state of New York a pathway to claw back that subsidy.

Amid Musk’s relationship with Trump and cost-cutting efforts with DOGE, Fahy is now demanding he relinquish state dealership licenses to instead be distributed among other EV manufacturers, including Rivian, Scout Motors and Lucid. Tesla models could still be purchased through other franchises, but the bill seeks to remove the monopoly that the EV giant currently enjoys. ‘The bottom line is, Tesla has lost their right to promote these when they’re part of an administration that wants to go backwards,’ Fahy said, noting that the administration Musk is helping is ‘killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change. ‘Elon Musk was handed a privilege here…. Why should we give them a monopoly?’

Fahy hoped her bill would help to ‘make amends’ for her previous support for Tesla. In a since-deleted X post seen by Daily Beast, Musk reportedly hit back, noting it would be ‘improper for lawmakers to target a single person or company.’ New York Governor Kathy Hochul is reportedly open to considering the bill if it passes both legislative chambers. Given DOGE’s contentious work, including initiating sweeping federal layoffs, Tesla’s investors have grown worried about damage to the brand and alienating a huge portion of their buying base. Musk’s political pivot has turned off many of the progressive and centrist buyers who once lined up for Teslas. Angry consumers have responded with impassioned, sometimes fiery, protests at Tesla dealerships.

The automaker’s first-quarter profits cratered 71 percent, with the EV giant pulling in $409 million compared to $1.4 billion during the same stretch last year. But the share price surged again last week when Musk announced plans to devote much more time to the company starting in May. The news, shared during Tesla’s first-quarter earnings call on Tuesday, amounted to an adrenaline shot for shareholders who have been irritated by Musk’s divided attention after spending the last three months with the Trump administration. At Friday’s close Tesla stock was trading as high as $284.96 per share, up 20% from Tuesday’s closing price of $237.97. ‘Starting next month, I will be allocating far more of my time to Tesla,’ Musk said during the earnings call, adding that ‘the major work of establishing the Department of Government Efficiency’ was done.

He said he would continue to spend a day or two a week on government matters, ‘as long as it is useful’ and the president wants him to do so. Around the nation, protesters have taken their frustrations against Musk out on Tesla owners and dealerships, sparking fury from Trump, who warned attacks on Teslas amounted to ‘domestic terrorism’ and threatened to imprison or deport offenders. Tesla showrooms, vehicle lots, charging stations and privately owned cars have been targeted by firebombing incidents and shootings.

Trump said he would send offenders to the same ‘hellish’ mega-prison in El Salvador to which his officials have deported alleged Venezuelan gang members. ‘I look forward to watching the sick terrorist thugs get 20 year jail sentences for what they are doing to Elon Musk and Tesla,’ he wrote on TruthSocial. ‘Perhaps they could serve them in the prisons of El Salvador, which have become so recently famous for such lovely conditions! People that get caught sabotaging Teslas will stand a very good chance of going to jail for up to twenty years, and that includes the funders. WE ARE LOOKING FOR YOU!!!’ Hackers have even doxxed Tesla owners in the United States, releasing an interactive map showing their names, addresses, phone numbers and emails on a website that uses a Molotov cocktail as a cursor.’

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