Tesla is hoping New York legislators will pass a bill this session to overturn the state’s ban on direct-to-consumer sales of zero-emission vehicles (ZEV) by manufacturers.

ZEV manufacturers are constrained in New York, and “that seems to be really out of sync with [the state’s] broader policy goals,” Albert Gore, director of public policy and business development at Tesla, said Thursday.

Sen. Todd Kaminsky (D) and Rep. Patricia Fahy (D) introduced companion bills (S 1763/A 4614) earlier this year to address that constraint. The bills would remove the current limit on the number of dealer registrations the state can issue to ZEV manufacturers if they do not have a franchised motor vehicle dealer in New York.

The companion bills are currently in their respective transportation committees.

Tesla’s sales model does not rely on franchises, and instead focuses on direct sales to control the educational process and cost structure for buyers, Gore said in a webinar hosted by New Yorkers for Clean Power.

New ZEV market entrants, such as Rivian and Lucid, also are choosing the direct sales model, but they are even more constrained than Tesla in the state.

Tesla opened five stores in New York before legislators passed a law in 2014 banning direct sales. The law followed a failed lawsuit in which the Greater New York Automobile Dealers Association claimed the motor vehicle department improperly granted Tesla a permit to operate as a dealer.

The five original Tesla stores were grandfathered under the 2014 law, according to Gore, who said the current bill before the legislature is designed to support dealer franchises and allow ZEV manufacturers to grow.

Because the bill would prohibit ZEV manufacturers from selling directly to consumers while having a franchised dealer, it “protects existing franchise dealers from what they would characterize as unfair methods of competition by their franchisors,” Gore said.

Franchise laws governing ZEV manufacturer direct sales vary by state. Gore said markets in 19 states are open for direct sales, and New York is not alone in seeking to alter dealer franchise laws.

A bill (SB 127) to allow direct ZEV sales to consumers in Connecticut passed out of the transportation committee March 24 for a vote in the House and Senate. The Connecticut Automotive Retailers Association opposes the legislation, saying on its website that Tesla favors a system “that will have no economic commitment locally.”

Mike Stanton, CEO of the National Auto Dealers Association, addressed the issue in a blog post March 15, saying direct sales are not needed for EVs.

“Direct sales could cripple EV adoption as more and more EV owners are forced to deal with higher prices and the headache of longer and longer wait times for even basic service,” he said.