Tesla could be subject to new legislation in New York that seeks to revoke permits for the company’s stores, as part of a bill introduced this week that sponsors say aims to “foster competition and innovation in the marketplace.”

Democratic State Senator Patricia Fahy and Assembly Member Gabriella Romero introduced S.B. S6894 on Thursday, effectively revoking direct sales permits from five existing Tesla stores in New York, as detailed in a press release. If passed, the New York bill would keep in place a five-store limit placed on direct sales locations, but would require the state’s DMV to re-evaluate existing permits and issue new ones, excluding Tesla, which currently holds all five of the available permits.

“This legislation provides controlled growth of New York’s ZEV market by not granting indefinite privileges to early entrants—currently, all five direct sales locations are located downstate and are operated by Tesla, Inc., which limits consumer choice and prevents other manufacturers from entering the market,” Fahy’s office writes in the release. “The bill would allow new manufacturers to enter the market and ensure that there is an opportunity to expand these locations geographically.”

Fahy also told Politico that the bill intentionally aims to target Tesla CEO Elon Musk in the wake of his efforts under the recently created government efficiency division under the Trump administration.

“No matter what we do, we’ve got to take this from Elon Musk,” Fahy said. “He’s part of an effort to go backwards.”

“The bottom line is, Tesla has lost their right to promote these when they’re part of an administration that wants to go backwards. Elon Musk was handed a privilege here.”

🚨 You’ve got to be insane to think it’s better for consumers and car buyers to delegitimize direct sales

“I love going to a car dealership” -nobody ever https://t.co/GXEzktUjnG

— TESLARATI (@Teslarati) February 10, 2025

READ MORE ON TESLA NEW YORK: Anti-Musk protests at Tesla store in New York lead to arrests

The release also highlights New York’s target of reaching 100-percent ZEV sales by 2035, as part of the state’s Climate Leadership and Community Protection Act (CLCPA). The bill also says it hopes to bring zero-emission vehicle (ZEV) direct sales stores to other parts of New York, adding that limited access to direct sales models has prohibited more widespread adoption of electric vehicles (EVs).

“As New York moves toward a clean energy future, we must ensure that consumers have greater access to zero-emission vehicles while fostering competition and innovation in the marketplace,” Fahey says. “This legislation takes a measured approach to inducing the growth of direct sales and opening the door for new ZEV manufacturers to enter New York State’s market, while keeping us on track to meet our ambitious climate goals.”

Other automakers with direct sales models, such as Lucid and Rivian, would also be able to bid for the five permits, potentially giving smaller companies a chance to establish physical store locations.

New York is one of several states that have limits on how many non-dealership franchise stores, or direct sales model stores, are allowed to operate statewide. Still others include complete bans on direct sales, requiring automakers to sell vehicles through franchised dealerships, sometimes even including service locations.

At this time, New York joins eight other U.S. states that have a cap on the number of available direct sales sites, while 13 states — including Tesla’s home state of Texas — still have total or partial bans on direct sales.

Tesla has filed a petition with Wisconsin to allow direct car sales

Elon Musk announced this week that xAI has acquired his social media platform X, performed through an all-stock transaction expected to make it easier to raise additional funding for the combined entities.

In a post on X on Friday, Musk said that xAI acquired X in an all-stock transaction, with xAI valued at $80 billion and X at $33 billion, considering a $45 billion value less $12 billion in debt for the social media company. He adds that combining the companies “will deliver smarter, more meaningful experiences,” along with offering a “platform that doesn’t just reflect the world but actively accelerates human progress.”

A report from the Wall Street Journal said that shares of X and xAI would be exchanged for shares in a holding company dubbed the xAI Holdings Corp., while the report also claimed that executives at both firms believed merging would make it easier to raise funding.

You can read Musk’s full statement on the acquisition below.

xAI has acquired X in an all-stock transaction. The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt).

Since its founding two years ago, xAI has rapidly become one of the leading AI labs in the world, building models and data centers at unprecedented speed and scale.

X is the digital town square where more than 600M active users go to find the real-time source of ground truth and, in the last two years, has been transformed into one of the most efficient companies in the world, positioning it to deliver scalable future growth.

xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach. The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge. This will allow us to build a platform that doesn’t just reflect the world but actively accelerates human progress.

I would like to recognize the hardcore dedication of everyone at xAI and X that has brought us to this point. This is just the beginning.

Thank you for your continued partnership and support.

READ MORE ON XAI: Elon Musk’s xAI gets investment from Nvidia in recent funding round: report

Musk officially purchased X, then called Twitter, and took it private for $44 billion in October 2022. The Tesla CEO then launched xAI in 2023, along with debuting the company’s first product, Grok, first as a large language AI model that was only available on X. The model has since been developed more and has added image generation, and the company last month debuted the latest-gen Grok 3 update.

Last month, it was also reported that xAI’s upcoming $700 million data center in Atlanta would be operated collaboratively with X, which is expected to eventually utilize over 12,000 Nvidia GPUs. The AI firm also activated an even larger data center in Memphis, Tennessee last year, dubbed Colossus, and expected to sport 200,000 Nvidia GPUs upon completion.

Elon Musk says xAI will develop an AI game studio

The filing of a lawsuit by a Tesla owner who had his vehicle vandalized by a brainwashed member of what is being called the “Tesla Takeover” movement should be the first of many.

For the past few months, we have seen so many instances of intimidation by those who oppose Tesla, CEO Elon Musk, and President Donald Trump. These occurrences have been incredibly frequent and have varied in terms of their severity. It’s been as arbitrary as keying a car, and as violent as gunshots and Molotov cocktails being shot and thrown at showrooms.

The side of the perpetrators seems to be under the impression that President Trump and Musk are punishing those who have differing viewpoints as if their very livelihoods are under attack. The problem is, although government spending and some government programs are being modified or eliminated, there is no specific group being targeted, which is a big reason the use of the word “Nazi” has been baffling to me over the past few months.

That other side will have you believe there is a right-wing force that has taken over the government and aims to violate the rights of everyone who is unlike them. Ironically, it is precisely what the “protestors” are doing. Don’t agree with us? Okay. We’ll damage your vehicle.

Although the Trump administration and the FBI have set up specific measures to investigate instances of vandalism and hopefully eliminate it altogether, things have not truly calmed down. In fact, it seems it is getting worse.

However, a lawsuit filed by a victim of one of these senseless attacks has set a new precedent: damage my car, you will find yourself in a lawsuit:

🚨 The first-ever lawsuit against a man caught on video using Sentry Mode as he vandalized a Tesla has been filed.

An anonymous Tesla owner has sued Rafael Hernandez, who was arrested after Sentry Mode caught video of him keying a vehicle.

The Plaintiff is suing for infliction…

— TESLARATI (@Teslarati) March 26, 2025

In actuality, this might be the best strategy for minimizing the instances of vandalism we have seen over the past several months. Nothing seems to be working, and the attackers, who appear to be of all shapes, sizes, and ages, only seem to be doing it more often, despite being caught on camera by Sentry Mode.

The suit that was filed against Rafael Hernandez, who keyed a Model X at DFW Airport, seeks $1m in damages. While it is unlikely he will be awarded that significant sum, what Hernandez ends up paying could be significantly more than just the amount of repairing the scratch.

This all funnels down to one specific point: Tesla drivers are simply that, people who drove to buy and drive a Tesla. Driving a car is not a political statement; it is, in many ways, simply a choice of convenience. People choose EVs for many reasons, with home charging, performance, and look being several of them.

Ask 100 Tesla owners why they bought the car, and I’m sure many would not say, “Because I love Elon Musk and agree with everything that comes out of his mouth.”

I am an Elon Musk fan, but I don’t agree with everything he has done or will do. I don’t agree with everything my parents, my friends, or my family do. I am not a loyalist to anyone except myself. This is where I find the vandalism to be so distasteful.

If Toyota’s CEO came out and said things that were controversial, for example, “We’re not transitioning to EVs because we don’t feel it’s the right time with demand,” something that was stated a few years ago as a part of their strategy, do you think Tesla owners were keying Toyotas? No.

Support brands that line up with your ideologies. Avoid ones that don’t. People of all ages do this peacefully. If you want to hurt a brand, don’t give them or their customers your money. Keying a Tesla might result in both with this initial lawsuit.

The point is, there is a right way and a wrong way to go about this. Vandalism is not the right way. Not only are you disrupting someone’s life who has nothing to do with Tesla, but now you’re putting yourself in the line of fire for a particularly substantial sum of money. Additionally, you’re not winning over any fans with this type of reaction. Nobody said “I now see their point since they keyed my car, I agree with them.”

I am hopeful that this lawsuit will encourage Tesla to go after the violent vandals who have attacked its stores. I am hopeful that this lawsuit will encourage Tesla owners to go after the violent vandals who have had their cars damaged by senseless people who have differing political views.

Perhaps this is the move that will start to bring down the frequency of these attacks.