[HotIce]

Mississippi Gov. Tate Reeves signed a bill Tuesday restricting electric car manufacturers from selling vehicles in person unless they open franchised dealerships.

Defying calls from some fellow Republicans in the Legislature to veto the measure, Reeves enacted into law House Bill 401, introduced by Republican Rep. Trey Lamar of Senatobia. The law will force electric car companies such as Tesla and Rivian to sell vehicles through franchises rather than company-owned stores, which is how they currently operate.

"Almost 200 small businesses in communities across our state are seeking assurances that big manufacturers can't just destroy their businesses. That's fair!" Reeves, a Republican, said in a statement posted to social media. "I also recognize that innovation in this industry is inevitable. And with innovation comes new companies with new business models. I am committed to find long-term solutions—in an ever changing market."

The bill does not restrict the sale of electric cars, as people can buy them online. But if they want to buy an electric car in person, they would have to drive to the state's only Tesla store in Brandon, which will be allowed to remain open under the new law. Tesla or any other electric car company could not open a new brick-and-mortar location to sell cars unless they enter a franchise agreement.

Before the bill passed in a bipartisan 39-13 vote on March 3, it sparked an intraparty debate among GOP lawmakers. Opponents said it would interfere with the automobile market and stop electric carmakers from bringing new technology and jobs to the state. Proponents said the law would ensure all car manufacturers, regardless of their business model, play by the same rules.

Republican Sen. Brice Wiggins, a Republican from Pascagoula, had hoped Reeves would veto the legislation. Lawmakers were aiming to attract Tesla to Mississippi's Gulf Coast, an area Wiggins called the state's economic driver.

"In today's world, if you don't innovate, you lose out. We as a state cannot afford to lose out," Wiggins told The Associated Press on Tuesday. "My vote against the bill was a vote for capitalism, competition and innovation rather than for a policy of protectionism."

Electric car stores will be restricted in Mississippi

Mississippi Gov. Tate Reeves signed a bill Tuesday restricting electric car manufacturers from selling vehicles in person unless they open franchised dealerships.

techxplore.com

 

[EVolution]

Mississippi be like

 

[TT97]

In 2021, EV sales in Mississippi accounted for 0.09% of U.S. sales. This bill will hurt residents of Mississippi, I don't think the manufacturers would even notice any sale difference.

 

[HotIce]

Mississippi be like

Throw in West Virginia. They really don't know how big of a mistake it was to stop that battery factory from being built. The boost to the states economy was going to be MONUMENTAL.

 

[Blu Angel]

Mississippi Governor Tate Reeves,
"The Magnolia State ranks #49 in the USA
and bygone, we're trying our best to join Alabama at #50!"

 

[Frank Blissett]

Besides the Jackson-area, there are also Tesla Experience Centers in Memphis and New Orleans. In addition, Mobile is just over the border. There are lots of folks who will travel 50-miles to get the car they want, EV or ICE. Plus, folks can still buy EVs online, and establishment auto makers will still sell through dealerships. ... The real threat to dealerships is not sales this decade, but their repair shop getting less business next decade.

 

[NJturtlePower]

Similar story here in NJ.

Originally Tesla was rejected completely for direct sales to consumers for not fitting the franchise model, then allowed to operate 4 physical locations in 2015, which was most recently expanded to 5 locations.

In major reversal, New Jersey allows Tesla to sell its cars directly, without dealerships

Governor Christie signed the bill into law this afternoon

www.theverge.com

This was fine for 2018 when the Model 3 just started rolling out, but now with tens of thousands of Tesla's in state and according to this top 6 in EV registration states we need more ASAP! Only thing holding it in check IMO is Tesla's excellent Mobile Service alleviating some congestion from service centers.

New Jersey EV Trends

2022 New Jersey EV Trends & Statistics to Know

www.recurrentauto.com

 

[Frank Blissett]

I've thought that the ultimate effect of this law would be limited, but I wonder whether it is even more toothless than it seems. ... For one, it wouldn't ban experience centers. It also would not ban using an experience center as a pick-up location for vehicles. The manufacturer can also keep vehicles at the experience center in anticipation of future online/phone sales.

Getting into speculation, I would think they would be in the clear installing customer-operated sales terminals at experience centers. Could they also use those terminals to video-conference with a remote sales person? And could on-site staff help the customer place an order so long as they were not actively selling the vehicle?

Potentially, the de-facto result of the law may simply be that manufacturers can own what are, essentially, dealerships so long as the local employees do not operate on commission (or sales-based bonuses), and avoid hard-selling the vehicles.