Elon Musk Slams Zohran Mamdani's City-Owned Grocery Store Proposal

Tesla CEO Elon Musk called New York Mayor Zohran Mamdani a ‘thief’ while responding to his grocery plan. Musk argued that technological advances in artificial intelligence and robotics, not government-backed subsidies, would ultimately make goods and services significantly cheaper.

Mamdani had planned to open city-backed grocery stores that would sell everyday food items at prices set below the traditional retailers. Musk accused Mamdani of lying and misleading the public. Musk said that AI and robotics will soon make goods cheaper and free rather than such schemes.

What Did Elon Musk Say?

While responding to an X post criticising Mamdani and a video of Mamdani, NYC Officials announcing price plan for city-owned grocery stores, Musk said, “What they’re doing won’t matter. AI & robots will actually deliver the free goods & services that those thieves pretend to offer, while actually stealing from others. Mamdani is a thief and a liar, plain and simple.”

The X user Musk replied to had also questioned the way he might select people to run the initiative.

What Is Mamdani's Grocery Store Plan?

Mamdani has allocated $70m in the city budget to open the five grocery stores, one in each of the city’s boroughs. He said the state-sponsored grocery stores 30% discount on the grocery staples New Yorkers depend on.

He noted that the cost of groceries has become one of the defining challenges of the affordability crisis. He had also announced that first grocery store will open by the end of 2027 at Hunts Point in the Bronx, a neighborhood where 77% of households struggle to afford basic necessities. All five stores — one per borough — will be open by the end of the Mayor’s first term, including La Marqueta in East Harlem. Grocery costs have risen 33% in the US since 2019, he noted.

Why Has The Proposal Sparked Debate?

Critics said that after this announcement, existing businesses will not be able to compete. Guardian reported that grocery store and bodega owners will struggle to succeed because of this plan to open five city-owned grocers.

Grocery store owner Gristedes John Catsimatidis told the New York Post, “We can’t compete with Mamdani opening city-run supermarkets for free.”

Economists, critics and political commentators have questioned how can the city offer 30 per cent discount if the grocery stores operate on thin margins. Mamdani, however, issued a request for proposals (RFP) from qualified grocers or firms to serve as operators of one or more NYC. Groceries stores. The selected operator will be responsible for day-to-day store operations, including merchandising, staffing and adherence to strong labor practices.

The initiative is a part of the wider goal of Mamdani’s administration of making basic groceries more affordable for all New Yorkers.