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- Like the rest of the US, Mississippi has laws that restrict car dealerships from selling directly to consumers.
- But Tesla has skirted those regulations by calling its lone location in the state a "store" instead of a "dealership."
- A new law that would close the loophole passed in the State Senate and now sits before Mississippi's governor.
A Mississippi Tesla store gets to play by different rules than its counterparts in the traditional auto dealership industry. But a new state law could level the playing field.
The Mississippi State Senate passed a bill Thursday that would force electric vehicle manufacturers to enter into franchise agreements in order to sell cars at brick-and-mortar stores, the Associated Press reported. The law, which now sits before Mississippi Gov. Tate Reeves, would place EV companies under the same regulations as traditional carmakers.
Tesla currently has one store operating in the state, which has skirted regulations that face traditional car manufacturers by classifying itself as a "store" and not a "dealership," the AP reported.
According to State Sen. Daniel Sparks, the law would not force the closure of the existing Tesla store in Mississippi — instead, the store would be grandfathered in under the law, but others like it would be prevented from opening, per the AP.
"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, per the Associated Press. "Please don't tell me Tesla's car doesn't identify as a car."
Opponents of the Mississippi bill have said it impedes the free market by imposing a regulation on Tesla and other EV manufacturers, while proponents argue the bill would level the playing field.
State Sen. Joey Fillingane said the bill could discourage EV companies from conducting business in Mississippi, warning that it could harm opportunity in the state.
"Maybe we just like being last all the time. Maybe it's a badge of honor — we're the last ones to change," Fillingane said, per AP. "If we're not careful ... we could deprive our citizens of opportunities they really ought not to be deprived of."
If signed into law, the bill would not prevent the direct sale of electric vehicles to consumers, because many of those cars, like Teslas, are sold online. Instead, lawmakers like Sparks argue the bill would create an more even playing field for all car manufacturers.
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