Car dealerships are usually multi-brand. They're happy to see a new brand as long as they can profit from it. This is a big FU to dealership owners from Tesla, saying "we don't need you to sell our cars". And Tesla is right of course: they don't.
Never underestimate the political power at the state level of car dealership owners. They have name recognition and a marketing budget that dwarfs any state senator, and everyone in state government sees this. As an elected official, you don't pick a political fight with someone who already has his name and face across half the billboards in a major city, and spends more on ads every week than you did on your entire campaign.