Could a Ballot Measure Open Direct EV Sales for Rivian in Washington?

Core Insights - Rivian Automotive, Inc. is supporting a citizen-led ballot initiative in Washington state to allow electric vehicle manufacturers to sell directly to consumers, aiming to compete with Tesla's unique advantage in the market [1][8] - The initiative is backed by the Washington Coalition for Consumer Choice and Innovation, which seeks to extend direct sales rights to more EV companies [2] - Current state law mandates vehicle purchases through dealerships, limiting direct sales by manufacturers like Rivian and Lucid Group, with Tesla being the only exception for over a decade [3][8] Initiative Details - The coalition must gather at least 308,911 valid voter signatures by early July to qualify for the ballot, with a recommendation to collect around 390,000 signatures to account for potential invalid entries [5] - The specific organizations behind the coalition have not been disclosed, but they have hired Winner & Mandabach Campaigns, a consulting firm with a 90% success rate in ballot campaigns [4] Legislative Context - Previous efforts to pass legislation allowing direct sales by companies like Rivian and Lucid stalled in the state House, with arguments that such changes would accelerate EV adoption and help meet carbon reduction targets [6] Company Performance - Rivian has underperformed compared to the Zacks Automotive-Domestic industry, with shares gaining 16.7% over the past six months, while the industry grew by 35.4% [7] - From a valuation perspective, Rivian is trading at a forward sales multiple of 2.69, which is below the industry's 3.22, indicating it may be undervalued [10] Financial Estimates - The Zacks Consensus Estimate for Rivian's loss per share for 2025 has widened by a penny in the past week, and the estimate for 2026 has also widened by a penny in the past month [12]