Tesla and the state's auto dealerships are locked in a turf battle.
The electric car company, founded by Elon Musk, wants to expand its New York retail shops from it's current five (all downstate) to 20.
Tesla sees New York as a growth market.
Senior manager Will Nicholas points out, "The electric vehicle industry is still in its infancy here. Less than one-percent of the New York fleet is actually electric. It’s compelling for us to stick with our direct to consumer business model.”
That business model is why dealership are lined up against a bill that would allow Tesla to quadruple its footprint here. Tesla sells direct to consumers. No middle man. No retailer required.
But for decades in New York, it's been law that new cars have to be sold by a dealership. Tesla's current retail stores are legal exceptions to that law made possible through a 2014 legislative deal, with the understanding that future additional Tesla outlets would be include dealerships.
Paul Stasiak, president of the Niagara Frontier Automobile Dealers Association, says Tesla enjoys an unfair advantage already because it is not beholden to the same regulations as dealers such as the state's Lemon Law.
And Stasiak says his membership is ready to fight Tesla's expansion plans.
"I think it’s more than our association as well. I think you’re going to see this battle waged on. And it’s a battle, I won’t lie.”