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Rivian sues to sell its EVs directly in Ohio
TechCrunchยท 2025-08-04 17:25
Core Argument - Rivian has filed a lawsuit in Ohio to enable direct sales of its electric vehicles (EVs) to consumers, challenging the state's existing laws that favor traditional dealership models [1][2]. Group 1: Legal Action and Claims - The lawsuit was filed against the registrar of Ohio's Bureau of Motor Vehicles, asserting that the state's prohibition on direct sales harms consumers by limiting competition and increasing costs [2][3]. - Rivian is seeking permission to apply for a dealership license, which would allow it to sell vehicles directly in Ohio, similar to Tesla's existing license since 2013 [4][5]. Group 2: Legislative Background - A 2014 law, influenced by lobbying from the Ohio Automobile Dealers Association, effectively blocked new manufacturers from obtaining dealership licenses while allowing Tesla a special exemption [5]. - Rivian's chief administrative officer criticized the law as unconstitutional and detrimental to consumer choice and competition in Ohio [5]. Group 3: Previous Legal Precedents - Rivian has previously won legal battles regarding direct sales, such as obtaining dealership licenses in Illinois in 2021 despite opposition from the state's dealer association [8]. - Lucid Motors has also faced legal challenges regarding direct sales, with a recent ruling against it in Texas, which is currently under appeal [9].