Rivian Files Lawsuit to Secure Direct Car Sales Rights in Ohio

Renowned electric vehicle manufacturer Rivian has filed a federal lawsuit against Ohio’s Bureau of Motor Vehicles (BMV) to allow the company to sell vehicles directly to customers in Ohio. This is the latest chapter in an ongoing dispute between new independent automakers in the U.S. and the powerful dealership lobby.

Rivian claims that Ohio’s ban on direct sales harms customers by restricting direct purchases, reducing competition, limiting consumer choice, and increasing costs and inconvenience. Currently, Rivian can sell directly in 25 states and Washington, D.C.

Rivian’s lawyers argue,
“Ohio’s ban on Rivian’s direct sales model is highly unreasonable — it reduces competition, limits consumer choice, and increases costs and inconvenience, which harms customers with no legitimate benefit.”

Rivian is seeking a dealership license from the court to enable direct sales in Ohio. Currently, Ohio customers must buy vehicles from other states where direct sales are permitted, and then send the vehicles to Rivian’s service centers in Ohio.

Rivian notes that Tesla has held a direct sales license in Ohio since 2013 and can sell directly to customers. However, in 2014, Ohio passed a law granting Tesla a special exemption while prohibiting other new companies from direct sales. Rivian believes this law resulted from pressure by the Ohio Automobile Dealers Association.

Rivian’s Chief Administrative Officer Mike Callahan said,
“Consumer choice is a cornerstone of the American economy. Ohio’s outdated and unreasonable direct sales ban is unconstitutional and unreasonable, harming the people of Ohio.”

Previously, Rivian has faced legal battles over direct sales rights. In 2021, after Illinois granted dealership licenses to Rivian and Lucid Motors, local dealer associations sued them but ultimately failed.

Meanwhile, Lucid Motors filed a lawsuit in Texas in 2022 against direct sales bans. Although the initial court ruling was not in Lucid’s favor, they have appealed.

The fight for direct sales rights by new EV manufacturers is ongoing across the U.S., signaling significant changes in the automotive industry.