The Mississippi Senate gave final approval Thursday to a bill to restrict electric car manufacturers from opening new brick-and-mortar dealerships.
The legislation, introduced in the House by Republican Rep. Trey Lamar of Senatobia, now heads to Republican Gov. Tate Reeves for his signature. It is unknown whether the governor will sign the bill, reports WTVA News.
On the Senate floor Thursday, the bill sparked an intraparty debate among GOP lawmakers. Proponents said the law would ensure all car manufacturers, regardless of their business model, play by the same rules.
Opponents said it would betray conservative principles by setting a government policy that interferes with the automobile market and would stop electric carmakers from bringing new technology and jobs to the state.
Apparently, Republican Sen. Daniel Sparks of Belmont. is not happy with Elon Musk’s Tesla dealerships, and that’s one big reason for his signing the bill.
Tesla sells vehicles in person at one facility in Mississippi that is classified as a store, not a dealership. The distinction allows the company to operate outside state laws governing franchise businesses, the Associated Press is reporting.
This exception, and the prospect of other electric companies taking advantage of it, gives these manufacturers special privileges that traditional automakers don’t enjoy, according to the senator.
“We’re saying if you choose to have a brick-and-mortar dealership, you have to follow the same laws that everyone else has to follow,” Sparks said. “Please don’t tell me Tesla’s car doesn’t identify as a car.”
Electrek reports that Mississippi House Bill 401 amends Mississippi law related to car dealerships, clarifying that EV manufacturers can’t get around the state’s dealership laws.
This is the latest in a long battle over EV dealerships (mostly occurring between Tesla and other start-up EV manufacturers), who prefer to sell cars online or in their own facilities.
Traditional dealerships, want to stop new EV makers from setting up their own easier sales processes – even though customers have shown much higher satisfaction from these new sales processes than with traditional dealerships.
