Mississippi Governor Tate Reeves has signed a bill that will restrict electric car manufacturers from selling vehicles in person unless they open franchised dealerships.
JACKSON, Miss. — Mississippi Gov. Tate Reeves signed a bill into law Tuesday that restricts electric car makers from selling vehicles in person unless they open franchised dealerships.
Defying calls from some fellow Republicans in the Legislature to veto the measure, Reeves signed into law House Bill 401, introduced by Republican Rep. Trey Lamar of Senatobia. The law will force electric car companies like Tesla and Rivian to sell vehicles through franchises instead of company-owned stores, which is how they currently operate.
“Nearly 200 small businesses in communities across our state are looking for assurances that big manufacturers can’t just destroy their businesses. It’s fair!” Reeves, a Republican, said in a statement posted on 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 finding long-term solutions in a constantly 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 would not be able to open a new physical location to sell cars unless they entered into a franchise agreement.
Before the bill passed in a bipartisan vote of 39-13 on March 3, it sparked an intrapartisan debate among Republican lawmakers. Opponents said it would interfere with the auto market and prevent electric car makers from bringing new technology and jobs to the state. Advocates said the law would ensure that all automakers, regardless of their business model, play by the same rules.
Republican Sen. Brice Wiggins, a Pascagoula Republican, had hoped Reeves would veto the legislation. Lawmakers aimed to lure Tesla to the Mississippi Gulf Coast, an area Wiggins called the state’s economic engine.
“In today’s world, if you don’t innovate, you lose. We as a state cannot afford to lose,” Wiggins told The Associated Press on Tuesday. “My vote against the bill was a vote for capitalism, competition and innovation rather than a policy of protectionism.”
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Michael Goldberg is a staff member of the Associated Press/Report for America Statehouse News Initiative. Report for America is a national nonprofit service program that places reporters in local newsrooms to report on undercover issues. Follow him on Twitter at twitter.com/mikergoldberg.
