Proposed legislation to ban car manufacturers from selling directly to consumers could impact the use of retail space to sell new vehicles in New York City.
Cars are already required to be sold in traditional dealerships. But some car makers have found a way to get around the law. Tesla Motors, which builds high-end electric vehicles, created subsidiaries to sell its cars from mall kiosks.
A group of New York’s automobile dealers are pushing for the bill, saying Tesla has an unfair advantage because the company doesn’t have the overhead of selling from a showroom, according to Capital New York. Governor Andrew Cuomo has said he will sign the legislation, should it pass.
Tesla expects to sell 35,000 of its 2014 electric vehicles this year — a 55 percent jump over sales last year, according to Capital New York.