JACKSON, Miss (AP) — Mississippi Gov. Tate Reeves signed legislation Tuesday restricting electric car makers from selling vehicles in person unless they open franchised dealerships.
Defying calls by some Republican colleagues in the Legislature to veto the measure, Reeves passed House Bill 401 introduced by Republican Representative Trey Lamar of Senatobia. The law will force electric car companies like Tesla and Rivian to sell vehicles through franchises rather than captive stores as they currently operate.
“Nearly 200 small businesses in communities across our state are seeking reassurances that large manufacturers cannot simply destroy their businesses. That’s fair!” Reeves, a Republican, said in a statement shared on social media. “I also recognize that innovation is inevitable in this industry. And with innovation comes new companies with new business models. I sit down to find 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 is allowed to stay 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 struck up a franchise deal.
Before the law passed in a bipartisan vote by a 39-13 vote on March 3, it sparked intra-party debate among GOP lawmakers. Opponents said it would disrupt the auto market and prevent electric car makers from bringing new technology and jobs to the state. Supporters said the law would ensure all automakers play by the same rules, regardless of their business model.
Republican Senator Brice Wiggins, a Republican from Pascagoula, had hoped Reeves would veto the legislation. Lawmakers wanted to lure Tesla to the Mississippi Gulf Coast, an area Wiggins described as the state’s economic powerhouse.
“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 protectionist policies.”
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Michael Goldberg is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that brings journalists into local newsrooms to cover undercover topics. Follow him on Twitter at twitter.com/mikergoldberg.