Mississippi Gov. Tate Reeves signed legislation on Tuesday restricting electric car manufacturers from selling vehicles in person unless they open franchised dealerships.
Reeves enacted House Bill 401 into law, which was introduced by Republican Rep. Trey Lamar, despite calls from some fellow GOP members to veto it.
The law will force electric car companies to sell 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!" the governor said in a statement posted to social media.
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"I also recognize that innovation in this industry is inevitable. And with innovation comes new companies with new business models. I am committed to find long-term solutions – in an ever changing market," he said.
The bill does not impact the sale of electric cars, as people can buy them online.
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If a resident wants to make a purchase in person, they would have to drive to the state's only Tesla store in Brandon.
The bill passed in a bipartisan 39-13 vote earlier this month, with some in the party hoping Reeves would veto the legislation.
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"In today’s world, if you don’t innovate, you lose out. We as a state cannot afford to lose out," Sen. Brice Wiggins told The Associated Press on Tuesday. "My vote against the bill was a vote for capitalism, competition and innovation rather than for a policy of protectionism."
The Associated Press contributed to this report.
