Rivian is fighting for the right to sell its electric vehicles directly to consumers in Ohio, taking on the powerful dealership lobby in the state. The company recently filed a lawsuit against Ohio’s Bureau of Motor Vehicles, claiming that the state’s prohibition on direct sales is harmful to consumers. Rivian is currently able to sell vehicles directly in 25 states and Washington, D.C.
The lawsuit argues that Ohio’s ban on direct sales reduces competition, limits consumer choice, and increases costs and inconvenience without any benefits. Rivian is seeking permission to apply for a dealership license in Ohio, similar to what Tesla has been able to do since 2013. However, a 2014 law passed by the state’s legislature, influenced by the Ohio Automobile Dealers Association, has effectively blocked new manufacturers from obtaining dealership licenses.
Despite facing legal challenges, Rivian has successfully obtained dealership licenses in other states like Illinois. Lucid Motors, another electric vehicle manufacturer, is also challenging a direct-sales ban in Texas. While these legal battles continue, both companies are pushing back against outdated regulations to provide consumers with more choices in purchasing electric vehicles.
