Calay News
Mississippi has passed a bill that will restrict electric vehicle (EV) dealerships in the state. The new legislation, which was signed into law on March 3, requires all new car dealerships to have a franchise agreement with automakers in order to sell their vehicles. This effectively prevents manufacturers such as Tesla, which sells vehicles directly to consumers, from setting up dealerships in Mississippi.
The bill has faced criticism from environmental groups and EV advocates, who argue that it will limit consumer choice and slow the adoption of electric vehicles in the state. Mississippi currently ranks 50th in the country for EV adoption, with just over 1,000 EVs registered in the state as of January 2023.
Proponents of the bill, including the Mississippi Automobile Dealers Association, argue that it will protect consumers and dealerships by ensuring that all new car sales are conducted through licensed and regulated dealerships. They also claim that the legislation will prevent automakers from undercutting dealership prices by selling directly to consumers.
The bill is similar to restrictions on EV dealerships that have been passed in other states, including Texas and Michigan. These laws have faced legal challenges from Tesla and other automakers, who argue that they violate free market principles and unfairly limit competition.
The passage of the Mississippi bill comes as the Biden administration pushes for increased adoption of electric vehicles as part of its climate agenda. The administration has set a goal of having half of all new vehicles sold in the US be electric by 2030, but achieving this goal will require overcoming obstacles such as the restrictions on EV dealerships in states like Mississippi.
Despite the challenges posed by the new legislation, there are some signs of progress for electric vehicles in Mississippi. The state recently received a $15 million grant from the Department of Energy to build EV charging infrastructure, and some local governments have implemented incentives for EV owners such as free parking and reduced registration fees.
The passage of the bill restricting EV dealerships in Mississippi reflects ongoing debates about the role of regulation in the rapidly evolving electric vehicle market. As automakers continue to innovate and expand their EV offerings, it remains to be seen how state and federal governments will balance the interests of consumers, dealerships, and manufacturers in the transition to a cleaner, more sustainable transportation system.
