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Mississippi's sole Tesla store plays by different rules than traditional car dealers in the state. A new state law is changing that

Tesla worker told Bloomberg that the company tracks their keystrokes.
A Tesla logo.Michael Macor/The San Francisco Chronicle via Getty Images
  • Like the rest of the US, Mississippi has laws that restrict car dealerships from selling directly to consumers.

  • But Tesla has skirted those regulations by calling its lone location in the state a "store" instead of a "dealership."

  • A new law that closes the loophole was passed by Mississippi Gov. Tate Reeves Tuesday.

A Mississippi Tesla store gets to play by different rules than its counterparts in the traditional auto dealership industry. But a new state law is set to level the playing field.

Mississippi Gov. Tate Reeves signed a bill Tuesday that would force electric vehicle manufacturers to enter into franchise agreements in order to sell cars at brick-and-mortar stores, the Associated Press reported. The law will place EV companies under the same regulations as traditional carmakers.

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Tesla currently has one store operating in the state, which has skirted regulations that face traditional car manufacturers by classifying itself as a "store" and not a "dealership," the AP reported.

"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 wrote in a tweet Tuesday.

According to State Sen. Daniel Sparks, the law would not force the closure of the existing Tesla store in Mississippi — instead, the store would be grandfathered in under the law, but others like it would be prevented from opening, per the AP.

"We're saying if you choose to have a brick-and-mortar dealership, you have to follow the same laws that everyone else has to follow," Sparks said, per the Associated Press. "Please don't tell me Tesla's car doesn't identify as a car."