Elon Musk's Negative Reputation with Democrats Could Jeopardize EV Sales Initiatives in State Legislatures
Tesla's efforts to market its electric vehicles directly to consumers, avoiding traditional dealerships, are encountering increased obstacles in Democratic state legislatures as Musk's influence expands nationally.
TroibNews 
ALBANY, New York — Elon Musk is making significant waves in Washington, yet in statehouses controlled by Democrats on both coasts, his lobbyists are encountering a chilly reception.
Tesla's ability to sell electric vehicles directly to consumers is limited in several states that maintain a traditional franchise dealership model. Over the last few years, Musk's company has lobbied for the right to establish its own sales locations in these states, but progress has been minimal.
Previously, Democrats in blue states and environmental advocates supported the idea of allowing Tesla and other electric vehicle manufacturers to sell directly to consumers instead of requiring online purchases. They viewed this as a cost-free way to boost EV sales and reduce transportation emissions.
However, Musk's increasing political influence and his alignment with Republican President Donald Trump have complicated these efforts.
“You could not pay me to carry that bill now,” stated New York state Sen. Pat Fahy, a Democrat from the Albany area, who had previously sponsored legislation to allow direct sales. “I’m thoroughly disgusted with Elon Musk and everything he stands for.”
As the world's richest person, Musk has become a controversial figure due to his rapid cuts to the federal workforce. While Tesla's leadership has faced criticism before, the brand had remained immensely popular among environmentally conscious consumers. That support is waning for many Tesla owners today.
Musk's financial backing of Trump’s reelection campaign and his role in pushing for aggressive cost-cutting measures in government have exacerbated tensions. He has sought to grant DOGE employees unprecedented access to government information, leading to legal disputes. Musk's approach has also included mass firings of federal employees, some of which were subsequently reversed, along with mandates for all employees to justify their roles or face job loss. This has turned DOGE into a rallying point for many Democrats.
In New York, Tesla is permitted to operate five sales locations, all situated in the New York City area, based on an agreement from over a decade ago. Other electric vehicle manufacturers like Lucid and Rivian find themselves barred from selling cars directly to consumers at physical locations.
According to the Electrification Coalition, a nonprofit advocating for electric vehicle adoption, there are over 25 states that impose some form of restriction on direct, in-person sales by electric vehicle manufacturers. The fight for direct sales has been challenging even without Musk’s escalating public profile, as auto dealerships, which have strong community ties and significant financial resources, are firmly against direct sales nationwide.
Established car manufacturers rely on franchised dealerships for sales, with state laws typically offering strong protections for dealers. The existing dynamic between manufacturers and their dealers has become particularly strained as traditional automakers express frustration over slow EV sales, while dealers resist demands for infrastructure like EV chargers.
To contrast the franchise model, Tesla and other EV-only manufacturers strive for control over the entire sales process, which enables them to maintain consistent pricing and standardized customer service. However, state franchise laws inhibit their ability to establish physical sales locations.
Consequently, Tesla has pushed for "direct sales" legislation in states where they face restrictions, while traditional dealers attempt to limit Tesla's operations and prevent other automakers from adopting direct sales strategies.
Auto dealers contend that EV manufacturers could sell under existing regulations but consciously choose not to. They argue that dealers create price competition and engage actively in local communities, asserting that changing the law to favor large corporations is unjust.
In Illinois, dealers are advocating for legislation that would prevent EV manufacturers from opening stores after losing a legal fight against Lucid and Rivian. Tesla operates 13 sales locations there, following a deal made in 2013.
In Washington state, Tesla’s business model, which bypasses dealerships by establishing company-owned locations for test drives and purchases, was exempted from restrictions. However, a Democratic lawmaker has introduced a bill to revoke this exemption.
Washington state Sen. Rebecca Saldaña, who chairs the Labor and Commerce Committee, noted her aim to promote discussions about boosting EV sales.
“People don’t think it’s fair that this one company has this and no one else does,” she remarked. “Because of his high profile, my ban bill [to remove Tesla’s exemption] I think got a lot more support than I thought.”
Saldaña is also sponsoring legislation to eliminate direct sales restrictions for EV manufacturers overall, aiming to provide companies like Rivian and Lucid with rights similar to those of Tesla. Despite the initiative, neither proposal is anticipated to advance this year due to strong resistance from auto dealers.
Washington Rep. Beth Doglio, who is backing the bill to enable other EV companies direct sales, expressed admiration for auto dealers who “do a lot of great work in communities.”
“This bill that I’ve introduced has some protections that the auto dealers have been asking for,” she added. “It does not allow manufacturers [they work with now] to go out and do direct sales and bypass the auto dealers.”
Connecticut similarly prohibits direct sales, where Democratic lawmakers have pursued a change for years, particularly with backing from environmental advocates until recently.
This year, only one Republican-sponsored piece of legislation has been introduced in a Democratic-controlled chamber, with Democratic lawmakers suggesting that Musk's reputation has undermined chances for reform — although dealer opposition remains a significant factor.
“The role that Elon Musk has been taking at the federal level, just ransacking and destroying federal agencies, doing so in a manner where he is rife with conflicts of interest, I think highlights why it’s important to have consumer protection laws to apply to everyone in the market and not to create exceptions for a single company,” asserted Connecticut state Rep. Matt Blumenthal, a Democrat opposed to direct sales in prior years.
Even proponents of allowing EV manufacturers to sell directly have conceded that Musk's actions in Washington have further diminished prospects for legislation this year.
“It just makes it that much more difficult, particularly in a blue state like Connecticut,” remarked state Sen. Christine Cohen, a Democrat.
Cohen noted discussions about possibly framing the legislation as a "boutique only" measure to facilitate smaller EV manufacturers while excluding Tesla.
Tesla has also explored establishing locations on tribal lands, opening a site at the Mohegan Sun resort in Connecticut and revealing plans for a new location on Oneida Indian Nation land in upstate New York in 2023.
Despite its challenges, Tesla retains its position as the leading electric vehicle manufacturer in the U.S., responsible for nearly half of the 1.3 million EVs sold in the country in 2024, according to Cox Automotive. However, Tesla's sales have declined even as total EV sales surged by 8 percent compared to 2023.
Volkswagen-backed Scout Motors, a newcomer in the EV market, is similarly pursuing direct sales by advocating for relevant legislation in South Carolina, where it is establishing a manufacturing plant.
Scout’s market research suggests consumer preference for a direct-sales model, which the company believes will enhance control over pricing, service experiences, and data from their vehicles, according to Cody Thacker, Scout’s vice president of commercial operations. The company anticipates starting vehicle deliveries in 2027.
“If you do all those things well, then there, in the end, is an opportunity for much greater financial returns with the direct model,” he stated.
Both Tesla and other EV manufacturers have supported Scout's measures, but resistance from traditional dealerships has stalled progress on the bill.
“The community has sacrificed a lot so I think it makes sense for those residents to have the opportunity to purchase a Scout, given the plant is in our backyard,” remarked South Carolina state Rep. Kambrell Garvin, a Democrat from nearby communities. “South Carolina is a ruby red state, … so there wouldn’t be as much anti-Elon Musk sentiment as there would be in a place like New York,” he added. “The General Assembly is trying to balance being business-friendly to international companies while not doing harm to local dealerships.”
Musk's popularity among Republicans could ultimately assist EV manufacturers advocating for direct sales in states like South Carolina, where a majority of the prohibitions on direct sales are enforced by Republican lawmakers.
“Entrepreneurs and job creators like Elon Musk have shown how important it is to break free from outdated and excessive regulations,” stated Eaddy Roe Willard, an official with the Richland County Republican Party, during discussions on South Carolina's direct sales bill. “His leadership at the Department of Government Efficiency, or DOGE, exemplifies the kind of innovation that flourishes when government streamlines its processes.”
Scout also aims to pursue direct sales in California, though Volkswagen dealers there have warned of potential lawsuits. In Florida, dealers have filed a lawsuit challenging Scout's acceptance of customer deposits, citing Volkswagen's ownership and its existing relationships with dealers as violations of state law.
Thacker clarified that while Scout operates as an independent U.S. company, its sole shareholder is the publicly traded German company Volkswagen AG. He confirmed that there is no connection between Scout and the Volkswagen Group of America, which sells through dealerships in the U.S.
The plan is to establish locations for direct sales in states where such practices are permitted, while utilizing dealer licenses for sales in other states, Thacker explained.
Unlike South Carolina, New York, Washington, and Connecticut have stringent environmental objectives and policies aimed at promoting the electrification of their transportation sectors.
New York and Washington are among the 11 states that have adopted regulations in line with California's EV sales rules, which seek to phase out new gas-powered car sales by 2035. This has drawn opposition from the Trump administration and congressional Republicans, who are working to repeal such regulations, likely triggering a contentious legal struggle.
To meet its 2030 climate law goal of reducing emissions by 40 percent from 1990 levels, New York would need at least 2 million electric vehicles on its roads. However, as of the end of 2024, the state recorded just over 270,000 registered EVs, according to its own statistics.
Even though the trajectory for achieving overall emissions targets seems increasingly unattainable as New York Gov. Kathy Hochul delays action, environmental advocates continue their push also supporting direct EV sales.
“It’s very clear that we have a problem, and that we are not on track to meeting our goal,” regarding EV deployment, said Julie Tighe, president of the New York League of Conservation Voters. “It’s not about any one particular company. It’s about the opportunity to sell more EVs.”
Lucid and Rivian allied with Tesla in 2021 to advocate strongly for direct sales before facing significant opposition from auto dealers and unions. Presently, Tesla remains the only one of those firms registered to lobby in New York as of 2025.
Legislation for direct sales has garnered some bipartisan backing. New York state Sen. Mark Walczyk, a Republican, expressed his support for allowing Tesla and others to sell EVs based on their business models as a matter of free market principles.
“Deciding whether someone’s business model functions well in your state with the mandates you’ve given … based on one person’s personality I don’t think is a good way to make public policy,” Walczyk commented regarding Democrats withdrawing support due to Musk's affiliations.
Rivian and Tesla did not respond to requests for comment.
A bill promoting direct sales has yet to be introduced by New York state Sen. Pete Harckham, a Democrat from Westchester County and chair of the Environmental Conservation Committee, though he has previously championed this cause and intends to introduce a proposal after the state finalizes its budget.
“We plan to do something on direct sales. We have to get our transportation sector moving,” Harckham said.
When asked whether Musk's ties to Trump might hurt the effort, Harckham responded cautiously.
“I don’t think it helps,” he acknowledged. “We don’t operate in a vacuum.”
Sophie Wagner contributed to this report for TROIB News
Tesla's ability to sell electric vehicles directly to consumers is limited in several states that maintain a traditional franchise dealership model. Over the last few years, Musk's company has lobbied for the right to establish its own sales locations in these states, but progress has been minimal.
Previously, Democrats in blue states and environmental advocates supported the idea of allowing Tesla and other electric vehicle manufacturers to sell directly to consumers instead of requiring online purchases. They viewed this as a cost-free way to boost EV sales and reduce transportation emissions.
However, Musk's increasing political influence and his alignment with Republican President Donald Trump have complicated these efforts.
“You could not pay me to carry that bill now,” stated New York state Sen. Pat Fahy, a Democrat from the Albany area, who had previously sponsored legislation to allow direct sales. “I’m thoroughly disgusted with Elon Musk and everything he stands for.”
As the world's richest person, Musk has become a controversial figure due to his rapid cuts to the federal workforce. While Tesla's leadership has faced criticism before, the brand had remained immensely popular among environmentally conscious consumers. That support is waning for many Tesla owners today.
Musk's financial backing of Trump’s reelection campaign and his role in pushing for aggressive cost-cutting measures in government have exacerbated tensions. He has sought to grant DOGE employees unprecedented access to government information, leading to legal disputes. Musk's approach has also included mass firings of federal employees, some of which were subsequently reversed, along with mandates for all employees to justify their roles or face job loss. This has turned DOGE into a rallying point for many Democrats.
In New York, Tesla is permitted to operate five sales locations, all situated in the New York City area, based on an agreement from over a decade ago. Other electric vehicle manufacturers like Lucid and Rivian find themselves barred from selling cars directly to consumers at physical locations.
According to the Electrification Coalition, a nonprofit advocating for electric vehicle adoption, there are over 25 states that impose some form of restriction on direct, in-person sales by electric vehicle manufacturers. The fight for direct sales has been challenging even without Musk’s escalating public profile, as auto dealerships, which have strong community ties and significant financial resources, are firmly against direct sales nationwide.
Established car manufacturers rely on franchised dealerships for sales, with state laws typically offering strong protections for dealers. The existing dynamic between manufacturers and their dealers has become particularly strained as traditional automakers express frustration over slow EV sales, while dealers resist demands for infrastructure like EV chargers.
To contrast the franchise model, Tesla and other EV-only manufacturers strive for control over the entire sales process, which enables them to maintain consistent pricing and standardized customer service. However, state franchise laws inhibit their ability to establish physical sales locations.
Consequently, Tesla has pushed for "direct sales" legislation in states where they face restrictions, while traditional dealers attempt to limit Tesla's operations and prevent other automakers from adopting direct sales strategies.
Auto dealers contend that EV manufacturers could sell under existing regulations but consciously choose not to. They argue that dealers create price competition and engage actively in local communities, asserting that changing the law to favor large corporations is unjust.
In Illinois, dealers are advocating for legislation that would prevent EV manufacturers from opening stores after losing a legal fight against Lucid and Rivian. Tesla operates 13 sales locations there, following a deal made in 2013.
In Washington state, Tesla’s business model, which bypasses dealerships by establishing company-owned locations for test drives and purchases, was exempted from restrictions. However, a Democratic lawmaker has introduced a bill to revoke this exemption.
Washington state Sen. Rebecca Saldaña, who chairs the Labor and Commerce Committee, noted her aim to promote discussions about boosting EV sales.
“People don’t think it’s fair that this one company has this and no one else does,” she remarked. “Because of his high profile, my ban bill [to remove Tesla’s exemption] I think got a lot more support than I thought.”
Saldaña is also sponsoring legislation to eliminate direct sales restrictions for EV manufacturers overall, aiming to provide companies like Rivian and Lucid with rights similar to those of Tesla. Despite the initiative, neither proposal is anticipated to advance this year due to strong resistance from auto dealers.
Washington Rep. Beth Doglio, who is backing the bill to enable other EV companies direct sales, expressed admiration for auto dealers who “do a lot of great work in communities.”
“This bill that I’ve introduced has some protections that the auto dealers have been asking for,” she added. “It does not allow manufacturers [they work with now] to go out and do direct sales and bypass the auto dealers.”
Connecticut similarly prohibits direct sales, where Democratic lawmakers have pursued a change for years, particularly with backing from environmental advocates until recently.
This year, only one Republican-sponsored piece of legislation has been introduced in a Democratic-controlled chamber, with Democratic lawmakers suggesting that Musk's reputation has undermined chances for reform — although dealer opposition remains a significant factor.
“The role that Elon Musk has been taking at the federal level, just ransacking and destroying federal agencies, doing so in a manner where he is rife with conflicts of interest, I think highlights why it’s important to have consumer protection laws to apply to everyone in the market and not to create exceptions for a single company,” asserted Connecticut state Rep. Matt Blumenthal, a Democrat opposed to direct sales in prior years.
Even proponents of allowing EV manufacturers to sell directly have conceded that Musk's actions in Washington have further diminished prospects for legislation this year.
“It just makes it that much more difficult, particularly in a blue state like Connecticut,” remarked state Sen. Christine Cohen, a Democrat.
Cohen noted discussions about possibly framing the legislation as a "boutique only" measure to facilitate smaller EV manufacturers while excluding Tesla.
Tesla has also explored establishing locations on tribal lands, opening a site at the Mohegan Sun resort in Connecticut and revealing plans for a new location on Oneida Indian Nation land in upstate New York in 2023.
Despite its challenges, Tesla retains its position as the leading electric vehicle manufacturer in the U.S., responsible for nearly half of the 1.3 million EVs sold in the country in 2024, according to Cox Automotive. However, Tesla's sales have declined even as total EV sales surged by 8 percent compared to 2023.
Volkswagen-backed Scout Motors, a newcomer in the EV market, is similarly pursuing direct sales by advocating for relevant legislation in South Carolina, where it is establishing a manufacturing plant.
Scout’s market research suggests consumer preference for a direct-sales model, which the company believes will enhance control over pricing, service experiences, and data from their vehicles, according to Cody Thacker, Scout’s vice president of commercial operations. The company anticipates starting vehicle deliveries in 2027.
“If you do all those things well, then there, in the end, is an opportunity for much greater financial returns with the direct model,” he stated.
Both Tesla and other EV manufacturers have supported Scout's measures, but resistance from traditional dealerships has stalled progress on the bill.
“The community has sacrificed a lot so I think it makes sense for those residents to have the opportunity to purchase a Scout, given the plant is in our backyard,” remarked South Carolina state Rep. Kambrell Garvin, a Democrat from nearby communities. “South Carolina is a ruby red state, … so there wouldn’t be as much anti-Elon Musk sentiment as there would be in a place like New York,” he added. “The General Assembly is trying to balance being business-friendly to international companies while not doing harm to local dealerships.”
Musk's popularity among Republicans could ultimately assist EV manufacturers advocating for direct sales in states like South Carolina, where a majority of the prohibitions on direct sales are enforced by Republican lawmakers.
“Entrepreneurs and job creators like Elon Musk have shown how important it is to break free from outdated and excessive regulations,” stated Eaddy Roe Willard, an official with the Richland County Republican Party, during discussions on South Carolina's direct sales bill. “His leadership at the Department of Government Efficiency, or DOGE, exemplifies the kind of innovation that flourishes when government streamlines its processes.”
Scout also aims to pursue direct sales in California, though Volkswagen dealers there have warned of potential lawsuits. In Florida, dealers have filed a lawsuit challenging Scout's acceptance of customer deposits, citing Volkswagen's ownership and its existing relationships with dealers as violations of state law.
Thacker clarified that while Scout operates as an independent U.S. company, its sole shareholder is the publicly traded German company Volkswagen AG. He confirmed that there is no connection between Scout and the Volkswagen Group of America, which sells through dealerships in the U.S.
The plan is to establish locations for direct sales in states where such practices are permitted, while utilizing dealer licenses for sales in other states, Thacker explained.
Unlike South Carolina, New York, Washington, and Connecticut have stringent environmental objectives and policies aimed at promoting the electrification of their transportation sectors.
New York and Washington are among the 11 states that have adopted regulations in line with California's EV sales rules, which seek to phase out new gas-powered car sales by 2035. This has drawn opposition from the Trump administration and congressional Republicans, who are working to repeal such regulations, likely triggering a contentious legal struggle.
To meet its 2030 climate law goal of reducing emissions by 40 percent from 1990 levels, New York would need at least 2 million electric vehicles on its roads. However, as of the end of 2024, the state recorded just over 270,000 registered EVs, according to its own statistics.
Even though the trajectory for achieving overall emissions targets seems increasingly unattainable as New York Gov. Kathy Hochul delays action, environmental advocates continue their push also supporting direct EV sales.
“It’s very clear that we have a problem, and that we are not on track to meeting our goal,” regarding EV deployment, said Julie Tighe, president of the New York League of Conservation Voters. “It’s not about any one particular company. It’s about the opportunity to sell more EVs.”
Lucid and Rivian allied with Tesla in 2021 to advocate strongly for direct sales before facing significant opposition from auto dealers and unions. Presently, Tesla remains the only one of those firms registered to lobby in New York as of 2025.
Legislation for direct sales has garnered some bipartisan backing. New York state Sen. Mark Walczyk, a Republican, expressed his support for allowing Tesla and others to sell EVs based on their business models as a matter of free market principles.
“Deciding whether someone’s business model functions well in your state with the mandates you’ve given … based on one person’s personality I don’t think is a good way to make public policy,” Walczyk commented regarding Democrats withdrawing support due to Musk's affiliations.
Rivian and Tesla did not respond to requests for comment.
A bill promoting direct sales has yet to be introduced by New York state Sen. Pete Harckham, a Democrat from Westchester County and chair of the Environmental Conservation Committee, though he has previously championed this cause and intends to introduce a proposal after the state finalizes its budget.
“We plan to do something on direct sales. We have to get our transportation sector moving,” Harckham said.
When asked whether Musk's ties to Trump might hurt the effort, Harckham responded cautiously.
“I don’t think it helps,” he acknowledged. “We don’t operate in a vacuum.”
Sophie Wagner contributed to this report for TROIB News
