Mississippi Passes Law Preventing EV Sale Via Brick And Mortar Stores, Impacting Tesla And Rivian

Mississippi Republican Governor Tate Reeves‘ bill forces electric vehicle manufacturers to enter into franchise agreements in order to sell cars at retail stores.

What Happened: “Today, I signed HB401 to restore MS's auto dealer franchise law back to how it had been interpreted for the last 50 years,” Reeves tweeted on Tuesday.

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Reeves has made House Bill 401 introduced by Republican Rep. Trey Lamar of Senatobia a law. EV makers will now have to sell their vehicles through franchises instead of company-owned stores.

“Almost 200 small businesses in communities across our state are seeking assurances that big manufacturers can't just destroy their businesses. That's fair!” Reeves said.

Though online purchases continue as a choice for prospective customers, EV maker cannot open a brick-and-mortar store to sell cars. They must enter a franchise.

The move will impact EV giant Tesla TSLA and other players such as Rivian Automotive Inc RIVN which sell to customers directly without dealers.

In February, the Florida House and Senate introduced two bills aimed at prohibiting automakers from selling vehicles directly to consumers.

Image: Pixabay

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