New York lawmakers are trying to shut down Tesla stores
New York state lawmakers have launched an effort to shut down Tesla’s stores in the state by revoking its waiver to allow direct sales.
Several states in the US have laws prohibiting the direct sale of electric vehicles to the public without going through third-party dealerships.
These bans stem from outdated laws intended to protect car dealers from their own automakers supplying the vehicles.
The idea is that automakers cannot open a company-owned store next to a third-party car dealer after they have invested in selling and servicing their cars. It would be unfair competition.
Now, some car dealerships are using those old laws to prevent automakers that have never had deals with third-party franchise dealers, such as Tesla and Rivian, from selling their vehicles to the public, even though it constitutes fair competition.
Tesla has been fighting those laws in many states with some success.
In New York, the anti-direct sale law remains in effect. Still, Tesla managed to obtain an exemption to open a few stores and service centers, despite its bid to expand being curtailed by the local dealership association.
Now, state legislators in New York are pushing to remove Tesla’s exemption and grant it to other electric vehicle (EV) automakers.
Senator Patricia Fahy, who was once an ally to Tesla in its fight to be allowed to sell in New York, is now leading the effort to remove Tesla’s waiver (via New York Times):
Ms. Fahy, a Democrat whose district includes Albany, and other state lawmakers are pushing to revoke a legislative waiver that has let Tesla directly operate five New York dealerships rather than sell cars through dealer franchises, as other carmakers must do.
Fahy’s effort stems from her regret of having supported Tesla in the past:
“Maybe I’m making amends,” Ms. Fahy replied when asked about her previous support for Tesla. Mr. Musk, she said, is “part of an administration that is killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change. Why should we give them a monopoly?”
Many, like Fahy, believe that CEO Elon Musk’s support for Trump and their efforts to curtail EV adoption amount to Musk pulling the ladder that helped Tesla dominate the EV space, just as other EV companies need it.
To be fair, the state senator is not completely changing her stance on direct sales because of Musk’s involvement with Tesla. Instead, she changed her opinion on giving Tesla a waiver:
Ms. Fahy now views Tesla’s waiver as an unfair advantage, and wants the company to forfeit its five licenses by 2026. Under her plan, the licenses could be redistributed to rival electric-vehicle manufacturers like Rivian, Lucid and the Volkswagen affiliate Scout Motors, which also employ a direct-to-consumer sales approach.
Tesla has long outgrown its waiver allowing five stores in New York, and lately, it has started using a loophole to open stores on native land in the state.
Electrek’s Take
I’ve made my thoughts clear about direct sales. They should be allowed for any automakers who don’t use franchise dealers. That includes Tesla.
I think Tesla should be allowed to sell its vehicles in New York, and people should be allowed to boycott them.
However, I agree that Tesla getting a specific waiver is unfair. Any new automaker, like Rivian, Lucid, etc., should also be able to open stores freely in the state.
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Last week, we reported that the e-bike world had a new motor claiming to be the lightest and most efficient. Now, we’re already seeing TQ’s new TQHPR40 motor proliferate on more road and gravel e-bikes, including the recently announced E-ASTR from Ridely.
Ridley’s new E‑ASTR brings lightweight electric assistance to its already impressive ASTR gravel platform, powered by the cutting-edge TQ HPR40 mid-drive system. Unlike bulkier e‑bike setups, this system adds just 1.17 kg (2.6 lb) at the crank and a discreet 1.46 kg (3.2 lb) and 290 Wh battery hidden within the downtube, keeping the frame’s silhouette nearly identical to the non-electric version of the same bike. According to BikeRumor, riders looking closely might spot only a slightly fatter downtube, internal cable routing, and a handlebar-end LED indicator, giving visual clues without shouting “electric bike.”
What the E‑ASTR gives up in sheer power from the petite motor, it gains in ride feel. The HPR40 is said to deliver a modest 40 Nm of torque and up to 200W of assist, or enough to smooth out climbs or offer a tailwind on gravel without overpowering the rider. With support cut off at 25 km/h (15.5 mph), pedal responsiveness remains natural and fluid. Combined with the ASTR’s race-inspired geometry, the bike looks to offer sharp handling and comfort suited to the rigors of modern gravel routes.
Ridley is currently offering the E‑ASTR in three spec levels: a value SRAM Apex XPLR AXS build €7,199 (or approximately US $8,500), a mid-range SRAM Rival XPLR AXS 1×13 version for €8,199 (or approximately US $9,700), and a top-tier Shimano GRX 2×12 Di2 model for €8,899 (or approximately US $10,500). Each features high-end drivetrains, integrated cockpit options, carbon wheels, and industry-standard gravel brakes and tires. With its race-ready frame and stealthy, lightweight e‑assistance, the E‑ASTR is positioning itself as a high-performance gravel machine that stays true to its roots, delivering help when needed, without overshadowing the rider.
Ultra-lightweight motors like the TQHPR40 are quietly reshaping the e-bike industry by making electric assistance almost invisible, both in looks and in feel. As systems shrink and integrate more seamlessly into traditional bike frames, they’re opening the door to new categories of performance-oriented e-bikes that preserve the ride dynamics of analog bikes while offering just enough support when it counts.
For riders who value a natural pedaling experience but still want a little help on climbs or longer days, and especially for aging riders who want to maintain their riding habits despite father time taking an impact on joints and muscles, these minimalist systems are proving that you don’t need a bulky battery or a massive motor to get the benefits of going electric. The result is a wave of stealthy, high-performance e-bikes that are less about replacing effort and more about enhancing the ride.
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After a month off trying to wrap our heads around all the chaos surrounding EVs, solar, and everything else in Washington, we’re back with the biggest EV news stories of the day from Tesla, Ford, Volvo, and everyone else on today’s hiatus-busting episode of Quick Charge!
It just gets worse and worse for the Tesla true believers – especially those willing to put their money where Elon’s mouth is! One believer is set to lose nearly $50,000 betting on Tesla’s ability to deliver a Robotaxi service by the end of June (didn’t happen), and the controversial CEO’s most recent spat with President Trump had TSLA down nearly 5% in pre-morning trading.
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Hyundai is getting ready to shake things up. A new electric crossover SUV, likely the Hyundai IONIQ 2, is set to debut in the coming months. It will sit below the Kona Electric as Hyundai expands its entry-level EV lineup.
Is Hyundai launching the IONIQ 2 in 2026?
After launching the Inster late last year, Hyundai is already preparing to introduce a new entry-level EV in Europe.
Xavier Martinet, President and CEO of Hyundai Europe, confirmed that the new EV will be revealed “in the next few months.” It will be built in Europe and scheduled to go on sale in mid-2026.
Hyundai’s new electric crossover is expected to be a twin to the Kia EV2, which will likely arrive just ahead of it next year.
It will be underpinned by the same E-GMP platform, which powers all IONIQ and Kia EV models (EV3, EV4, EV5, EV6, and EV9).
Like the Kia EV3, it will likely be available with either a 58.3 kWh or 81.4 kWh battery pack option. The former provides a WLTP range of 267 miles while the latter is rated with up to 372 miles. All trims are powered by a single electric motor at the front, producing 201 hp and 209 lb-ft of torque.
Although it may share the same underpinnings as the EV2, Hyundai’s new entry-level EV will feature an advanced new software and infotainment system.
According to Autocar, the interior will represent a “step change” in terms of usability and features. The new system enables new functions, such as ambient lighting and sounds that adjust depending on the drive mode.
It’s expected to showcase Hyundai’s powerful new Pleos software and infotainment system. As an end-to-end software platform, Pleos connects everything from the infotainment system (Pleos Connect) to the Vehicle Operating System (OS) and the cloud.
Pleos is set to power Hyundai’s upcoming software-defined vehicles (SDVs) with new features like autonomous driving and real-time data analysis.
As an Android-based system, Pleos Connect features a “smartphone-like UI” with new functions including multi-window viewing and an AI voice assistant.
The new electric crossover is expected to start at around €30,000 ($35,400), or slightly less than the Kia EV3, priced from €35,990 ($42,500). It will sit between the Inster and Kona Electric in Hyundai’s lineup.
Hyundai said that it would launch the first EV with its next-gen infotainment system in Q2 2026. Will it be the IONIQ 2? Hyundai is expected to unveil the new entry-level EV at IAA Mobility in September. Stay tuned for more info. We’ll keep you updated with the latest.
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