Mississippi lawmakers move to restrict electric car dealerships

Electric car makers would be barred from opening new dealerships in the Mississippi unless they abide by the same rules as gas-powered car dealers, under a law passed in the state’s senate Thursday.

Tesla only operates at one facility in the Magnolia State, but it is classified as a store, not a dealership. That allows the electric auto maker to sell directly to customers and not through a franchisee.

No gas-powered manufacturer has the same status. Under the new bill, neither Tesla nor any other electric car maker could open a new brick-and-mortar location without a franchise agreement.

The bill’s backers say it will level the playing field, while opponents object to creating a government policy that interferes with the car market. They say the law would likely stop electric carmakers from bringing jobs and new tech to Mississippi.

“We’re telling the electric vehicles to use a different sales model, that their sales model is not acceptable in Mississippi. How that hurts consumers is, number one, these electric vehicles, if you have to go to a middleman and go to a dealership, you can already count on a 5% increase in cost tacked on just for the middleman on that,” said Republican state Sen. Jeremy England.

“By shutting down their sales model to get these electric vehicles to the consumers here in Mississippi, I believe we’re sending the wrong message,” he added.

With News Wire Services