In New York, the legislative session is winding down, so it is a particularly dangerous time for bad legislation to be introduced.
That being said, I doubt a low volume car constitutes any significant amount of tax revenue.
Is there any other source who speaks this dialect of legalese and has concluded that that's what the bill would do? Have the bill's sponsors had a chance to explain the bill?
Read the bill. Line 11-17 of the bill text linked to in this thread.
"The commissioner shall not issue any certificate of registration authorized by this section to any franchisor, MANUFACTURER, DISTRIBUTOR BRANCH OR FACTORY BRANCH, as such [term is] TERMS ARE defined in section four hundred sixty-two of this title, OR TO ANY SUBSIDIARY, AFFILIATE OR CONTROLLED ENTITY THEREOF, except that the commissioner may renew such certificate previously issued or otherwise approved to operate to a franchisor prior to [May second, two thousand two] JULY FIRST, TWO THOUSAND SIX."
In other words, if you are a manufacturer (or subsidiary) of automobiles who wasn't in operation prior to 1 July, 2006, the Commissioner of the NYS Department of Motor Vehicles shall not authorize your registration as an auto dealer. If enacted, this bill would not allow Tesla to operate its outlets in New York.