Musk Backlash Sours Democrats on Tesla Bid for Direct Sales (1)

Elon Musk’s political alliance with President Donald Trump has jeopardized Tesla Inc.’s efforts in blue states to sell cars directly to consumers.

Lawmakers in New York and Washington have backed off legislation that would allow EV manufacturers to sell more vehicles to customers beyond current caps. A Connecticut bill legalizing direct sales has also stalled this year.

Car dealers have spent millions of dollars in recent years lobbying legislatures to protect their dominance of new vehicle sales. Twelve states ban the sale of new EVs by anyone besides a dealer franchise, while 16 more restrict such sales through measures ...