- Rivian filed a lawsuit on August 4 challenging Ohio’s ban on direct-to-consumer vehicle sales.
- The company claims the law is unconstitutional and anti-competitive.
- Rivian cites a 2014 Tesla exemption that allows its rival to sell directly in Ohio.
- The lawsuit targets the Ohio Bureau of Motor Vehicles.
- Rivian already operates service centers in the state but must process sales elsewhere.
The Big Picture
Electric vehicle maker Rivian has filed a lawsuit against the state of Ohio over its 2014 law that prohibits direct vehicle sales to consumers. The EV startup argues that the legislation unfairly shields franchised auto dealers from competition while giving Tesla, a major rival, special treatment under a carve-out provision.
What’s New
The lawsuit, filed August 4 in an Ohio court, challenges the constitutionality of the state’s direct-sales ban. Rivian asserts that the law “reduces competition, decreases consumer choice and drives up consumer costs and inconvenience — all of which harm consumers — with literally no countervailing benefit.”
According to Yahoo News, Rivian highlighted the 2014 exception granted to Tesla, which operates three stores in Ohio. That provision allowed Tesla to sell vehicles from its existing dealerships and open an additional one — a privilege denied to other EV makers like Rivian.
What They’re Saying
Rivian’s Argument
The EV manufacturer emphasized that although it currently maintains service centers in Ohio and supports customers in registering their vehicles, it cannot complete sales within the state. Instead, Rivian customers are required to purchase vehicles in neighboring states and have them delivered to Ohio.
Rivian’s case underscores its broader efforts to bypass traditional dealership networks and reach buyers directly, a model it claims better serves the modern electric vehicle market.
Regulatory Silence
The lawsuit names the Ohio Bureau of Motor Vehicles as a defendant. The agency has yet to respond to the filing. Likewise, the Ohio Automobile Dealers Association did not immediately comment on the suit, according to Yahoo News.
What’s Next
The case could test how far states can go in protecting legacy dealership frameworks amid the rapid evolution of EV sales models. Rivian’s legal challenge could set precedent as more EV startups push for direct sales access in states with restrictive dealership laws.
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