The Mississippi Senate has passed a bill aimed at restricting electric car manufacturers from opening new brick-and-mortar dealerships in the state, reported first by AP on Friday, March 3.
The bill would require such manufacturers to adhere to the same regulations as traditional automakers. It was introduced in the House by Republican Rep. Trey Lamar of Senatobia, and now awaits the signature of Republican Gov. Tate Reeves.
Lights glow from Tesla Inc. electric vehicles displayed in the dark at night at a Tesla showroom location on Van Ness Avenue in San Francisco, California on January 19, 2023. - A lawyer for angry Tesla investors told a California courtroom on January 18, 2023, that CEO Elon Musk lied about having funding in place to take the company private, costing his clients millions of dollars. More than four years after firing off tweets saying he had funding secured to buy the electric car maker at $420 a share, investors who felt burned by the misleading statements began to make their case in the San Francisco court.
The proposed legislation has sparked a debate among Republican lawmakers, with some arguing that it goes against conservative values by introducing government intervention in the auto market. Others support the bill, saying that it would level the playing field for all car manufacturers, regardless of their business model.
While opponents of the bill have argued that it would prevent electric carmakers from bringing new technology and jobs to the state.
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How the Bill Could Impact Tesla
The legislation would require EV manufacturers to open physical dealerships instead of selling cars through company-owned stores. Critics argue that the bill unfairly hinders competition, as it would only apply to EVs, while traditional automakers would be unaffected.
The move could impact Tesla, which currently operates a single location in Jackson, classified as a store, allowing the company to operate outside of state laws governing franchise businesses.
Republican Senator Brice Wiggins accused traditional dealers of trying to stifle competition, while Senator Joey Fillingane warned that the bill could make Mississippi less attractive to EV manufacturers seeking investment opportunities.
Senator Sparks believes that the Biden administration's push for electric vehicle adoption, coupled with an exemption from state franchise laws, has created an uneven playing field that gives electric car manufacturers a competitive edge.
The proposed bill in Mississippi does not ban the direct sale of electric cars, as buyers can still purchase them online. However, the bill would prohibit the establishment of new brick-and-mortar dealerships in the state, requiring buyers to visit the only Tesla store in Pearl if they want to buy an electric car in person.
To open a new physical sales location, electric car companies would need to enter into franchise agreements. The bill was passed with bipartisan support in the Mississippi Senate, with a vote of 39-13.
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