Mississippi’s Tesla store, the only one of its kind in the state, follows different rules from other traditional car dealers. That is why a new law was passed.

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• Mississippi, like the rest of the US has laws that prohibit car dealerships selling directly to consumers.
• Tesla, however, has evaded these regulations by calling its sole location in the state a store instead of a dealership.
• A new law to close the loophole was passed by the State Senate. It is now before Mississippi's governor.

The rules for a Mississippi Tesla store are different from those of traditional auto dealerships. A new state law could change the game.

According to the Associated Press, Thursday's Mississippi State Senate vote passed a bill that would require electric vehicle manufacturers to sign franchise agreements to sell their cars in brick-and mortar stores. The law is now before the Mississippi Governor. Tate Reeves would put EV companies under the exact same regulations as traditional carmakers.

Tesla currently operates one store in the state. According to the AP, Tesla has avoided the regulations facing traditional car manufacturers by classifying it as a "store" rather than a dealership.

State Senator Daniel Sparks stated that the law wouldn't force the closing of the Tesla store in Mississippi. Instead, the law would grandfather in the store, but other similar stores would be prohibited from opening.

Sparks stated that if you decide to open a brick-and mortar dealership, you must follow the same laws as everyone else," according to the Associated Press. Please don't tell Tesla that the car it's not a car.

The Mississippi bill's opponents claim it impedes free markets by imposing a regulation upon Tesla and other EV makers, while supporters argue that the bill will level the playing field.

Joey Fillingane, a state senator, said that the bill could discourage electric vehicle companies from doing business in Mississippi. He also warned that it could hurt opportunities in Mississippi.

"Maybe we like to be last all the times. Fillingane stated that it could be a badge of honour — we are the last to change, as per AP. "If we don't take precautions, we could deny our citizens opportunities they shouldn't be denied."

The bill, if it is signed into law, would not prohibit the direct sale to consumers of electric vehicles, as many of these cars, such as Teslas, can be purchased online. Sparks and other lawmakers argue that the bill will create a more level playing field for all car makers.

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By: apollard@insider.com (Aidan Pollard)
Title: Mississippi’s sole Tesla store plays by different rules than traditional car dealers in the state. A new law aims to change that.
Sourced From: www.businessinsider.com/mississippi-pushes-bill-placing-restrictions-on-electric-vehicle-sales-2023-3
Published Date: Fri, 03 Mar 2023 21:38:22 +0000

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