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Tesla wants to expand in New York with 20 stores to support Model 3, pushes new direct sale bill

While Tesla first plan to roll out the Model 3 in California and gradually move east, the $35,000 all-electric vehicle could make its way to New York fairly soon depending on how fast Tesla can ramp up production.

Our estimation is that there could be tens of thousands of reservations for the Model 3 in New York and since Tesla is limited to 5 stores in the state due to a direct sale constraint, it would be almost impossible for those 5 locations to handle the demand.

That’s why they are pushing a new bill to loosen the direct sale restriction and allow them to open up to 20 stores in the state. 

In 2014, there was a lot of pressure from car dealerships on the New York legislature to clarify the ban on car direct sale in order for Tesla to see its dealer license removed.

The dealerships were successful in clarifying the direct sale ban, but Tesla struck a deal that enabled them to maintain their 5 licenses.

It was the best they could get at the time, but it has limited their growth in the state. Tesla’s Vice President of Business Development Diarmuid O’Connell commented this week (Times Union):

“What happened three years ago was an unnatural constraint on our ability to grow,”

At one point, Tesla even had to wait to close or stop selling vehicles at a Manhattan location in order to open its new Service Plus Center in Brooklyn.

Now Assembly Democratic Majority Speaker Joe Morelle of Rochester has introduced a new bill, which still needs a sponsor in the Senate, in order for Tesla to open up to 20 stores in the state of New York.

Currently, all 5 stores are located in the Greater New York City area or Long Island, but the new 20-store restriction would allow them to open locations upstate and support upcoming Model 3 buyers.

Like in Texas, the new legislative push comes at a critical moment for Model 3 reservation holders. Unfortunately, the direct sale effort failed again in Texas, which will complicate things for Model 3 buyers. Tesla will try to avoid the same situation in New York.

The Model 3 is expected to be very popular in New York, especially for early buyers who could have access to the full $7,500 federal tax credit and the full $2,000 state incentive, which was designed to encourage the sales of vehicles like the Model 3 since it introduced range and price restrictions.

Tesla’s upcoming vehicle could technically start at $25,500 in the state after incentive.

Here’s the bill below and New Yorker’s can find their legislators here if they want to voice their opinion about it:

[scribd id=350514425 key=key-CkafZu67ANk7XfUNsrSL mode=scroll]

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