Mississippi Gov. Signs Bill Enacting Level Playing Field for Electric Vehicle Companies and Traditional Dealerships

Mississippi Governor. Tate Reeves signed legislation requiring electric car manufacturers to sell their vehicles through local businesses, not stores owned by them.

“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, who is a Republican, stated on social media that he believes innovation is inevitable.

“And with innovation comes new companies with new business models,” Reeves said. “I am committed to find long-term solutions—in an ever changing market. I look forward to working with all parties going forward to do just that.”

State House Republican Trey Lamar introduced this legislation. Opponents say it interferes in the free market. Those in favor claim the law only ensures that businesses are subjected to the same state laws that dealerships.

The new law will allow Tesla to keep its one store in Mississippi for electric cars open. However, any other electric-car companies that want to open a store in the state would need to comply with the state franchise regulations.

‘Please Don’t Tell Me Tesla Doesn’t Identify as a Car’

Republican state Sen. Daniel Sparks told the Associated Press when the Senate passed the bill at the beginning of March in a 38–14 vote that it prevents electric car manufacturers from benefitting from advantages that local, traditional car dealerships don’t have.

“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.”

Republican state Sen. Jeremy England opposed the bill because he believes it could put Mississippi behind in the market for electric vehicles, he told WREG news.

“We’re telling the electric vehicles to use a different sales model, that their sales model is not acceptable in Mississippi,” England. “How that hurts consumers is, number one, these electric vehicles, if you have to go to a middleman and go to a dealership, you can already count on a 5% increase in cost tacked on just for the middleman on that. By shutting down their sales model to get these electric vehicles to the consumers here in Mississippi, I believe we’re sending the wrong message. I think we’re telling them we’re going to do things the old way here in Mississippi. Good luck in the other states. They’re going to start selling their vehicles there and we’re going to miss out on it.”

Declining Interest

Bipartisan Infrastructure Act and Inflation Reduction Bill have provided incentives that have led to a boom in EV-related industrial plant, many of them in a formation known as “The Battery Belt” Southern states such as Alabama and Georgia are among the most popular.

However, even though investment in these plants has increased, demand is reportedly decreasing due to high cost, supply-chain issues and accessibility to charging points. Manufacturing companies, however, are reporting billions of dollars in quarterly losses.

This report was co-authored by Katabella Roberson, Bryan Jung, The Associated Press, and The Associated Press.