Electric vehicle manufacturers, including Tesla, may face hurdles in opening new company-owned stores in Mississippi. The Senate has approved House Bill 401 by a vote of 38-14 following a heated two-hour debate among lawmakers. The controversial bill mandates EV makers to sell their vehicles through franchised dealerships, instead of their usual practice of using company-owned stores.
The bill’s approval has raised concerns that the state could potentially miss out on substantial investments from EV makers like Rivian and Lucid. In a statement to WJTV 21 News, State Senator Jeremy England expressed his opposition to the bill, calling it “bad policy.” He believes that the bill sends the wrong message to EV makers, who may opt to sell their vehicles in other states where their sales model is acceptable.
The senator also pointed out that mandating EV makers to sell through dealerships could increase costs for consumers. He argued that going through a middleman would inevitably result in a 5% increase in the cost of the vehicles.
Supporters of the bill have argued that it ensures a level playing field for all carmakers, regardless of their respective business models. However, Senator England disagreed, citing the example of Nevada, which has an open model state that allows companies like Tesla to sell their cars directly to consumers. The state recently saw a $3.4 billion investment by a battery company.
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The approval of House Bill 401 does not affect Tesla’s lone store in Brandon, Mississippi. However, if the bill is signed into law by Governor Tate Reeves, EV makers looking to open new company-owned stores in the state may face challenges. Senator England believes that this could ultimately result in Mississippi losing out on significant investments from EV makers.
Below is the text of House Bill 401 as passed by the House.
[pdf-embedder url=”https://evmagz.com/wp-content/uploads/2023/03/629134987-HB0401PS.pdf”]
