Mississippi bill to restrict direct sales of electric cars

Tesla and other electric car makers may find it difficult to open new company-owned stores in Mississippi in the future.

After a nearly two-hour debate among lawmakers, the House passed Bill 401 by a vote of 38-14.

The bill is now on its way to Mississippi Governor Tate Reeves' office.

Mississippi bill to restrict direct sales

  • House Bill 401 is controversial.

  • If the law is passed, electric car makers like Tesla, Rivian, and Lucid would be mandated to sell their cars through a licensed dealership.

  • Today's electric vehicle makers typically sell their electric vehicles through company-owned stores.

  • In a statement to WJTV 21 News, Sen. According to Jeremy England, the bill is simply bad policy.

  • He also stated that Mississippi is sending the wrong message by passing the bill.

  • This could result in the country losing out on what could be profitable investments.

  • "We're telling electric vehicle manufacturers who use a different sales model that their sales model is not acceptable in Mississippi," he added. If you have to go to a broker and go to a dealership, that raises the cost by a 5% increase in the cost that is charged to the broker just on that."

  • Sen. Jeremy noted, "I think we're sending the wrong message. I think we're telling them, 'Look, we're going to do things the old-fashioned way here in Mississippi. Good luck in the other states."

  • Supporters of the bill have indicated that it would ensure that all automakers operate by the same rules, regardless of their business models.

  • However, Senator Jeremy argued that states like Nevada, which allow companies like Tesla to sell their cars through company-owned stores, have recently seen huge investments of billions of dollars.


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