A game-changing law has been enacted in Florida that is set to reshape the car sales landscape in the state. While it poses challenges for major automakers, it presents opportunities for electric vehicle manufacturers.
Recently, Governor Ron DeSantis gave his seal of approval to HB 637, a law that prevents legacy automakers like Ford and General Motors from selling vehicles directly to consumers online or through a direct-to-consumer model if they already have dealerships in the state. However, this ban does not extend to entities or individuals without existing dealerships. As a result, electric vehicle makers such as Rivian, Polestar, Lucid, and Tesla can continue to sell their cars directly to customers.
While other states like Louisiana, New Mexico, and Texas also prohibit automakers from selling directly to consumers, Florida’s law stands out because it provides an exception for certain companies. This law will be enforced starting July 1, and there has been no immediate response from Governor DeSantis’ office or Tesla regarding the matter.
Tesla has already successfully fought for the right to sell directly to customers in Delaware and Michigan. Furthermore, the company is currently challenging Louisiana’s ban, arguing that it is protectionist, anti-competitive, and inefficient. On the other hand, General Motors has stated that it will comply with Florida law while still supporting its customers. Ford and Stellantis, the parent company of Chrysler, referred inquiries to the Alliance for Automotive Innovation (AAI), which declined to comment.
Last May, AAI urged Governor DeSantis to veto the legislation, claiming that it would make the vehicle purchasing process more complicated, increase costs, and limit consumer choices. The organization argued that the law would hinder modern consumer preferences, which prioritize customization, convenience, and availability of the desired vehicle. Critics of the law believe that it creates an unfair advantage for traditional carmakers, as dealerships often impose unnecessary fees on transactions that inflate the final purchase price. Conversely, direct sales eliminate this pricing layer and could potentially give EV manufacturers a price advantage.
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