Rivian Sues To Sell Its EVs Directly In Ohio

Rivian has filed a federal lawsuit in Ohio to challenge a state law preventing it from selling electric vehicles directly to consumers, arguing the rule is anti-competitive and outdated. The law currently protects legacy dealerships while allowing Tesla a special carve-out, and Rivian wants similar rights to apply for a direct-sales license in the state. TechCrunch reports: 'Ohio's prohibition of Rivian's direct-sales-only business model is irrational in the extreme: it reduces competition, decreases consumer choice, and drives up consumer costs and inconvenience -- all of which harm consumers -- with literally no countervailing benefit,' lawyers for the company wrote in the complaint. Rivian is asking the court to allow the company to apply for a dealership license so it can sell vehicles directly. Ohio customers have to buy from Rivian vehicles from locations in other states where direct sales are allowed. The cars are then shipped to Rivian service centers within Ohio.

Allowing Rivian to sell directly would not be treading new legal ground, the company argues in its complaint. Tesla has had a license to sell in Ohio since 2013 and can sell directly to consumers. What's stopping Rivian is a 2014 law passed by the state's legislature. That law, which Rivian says came after an intense lobbying effort by the Ohio Automobile Dealers Association (OADA), effectively gave Tesla a carve-out and blocked any future manufacturers from acquiring the necessary dealership licenses. 'Consumer choice is a bedrock principle of America's economy. Ohio's archaic prohibition against the direct-sales of vehicles is unconstitutional, irrational, and harms Ohioans by reducing competition and choice and driving up costs and inconvenience,' Mike Callahan, Rivian's chief administrative officer, said in a statement.

Read more of this story at Slashdot.