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Rivian, Lucid and Scout Decry State Dealer Laws Blocking Direct EV Sales

State franchise rules now shape how newcomers market and deliver electric cars.

Overview

  • Executives from Rivian, Lucid and Scout said decades-old dealer franchise laws prevent direct sales in many states and make EVs harder to buy.
  • Rivian described Ohio limits that block a dealer license and test drives, forcing online purchases and out-of-state paperwork with temporary Illinois tags and power-of-attorney forms.
  • Lucid said the patchwork creates awkward store visits and legal risk for staff, with Michigan allowing demos and price talks but not final sales or vehicle titles.
  • Scout said it has invested more than $2 billion in a South Carolina factory yet cannot sell there, so local buyers would need to purchase in Tennessee.
  • Dealer groups called the laws consumer safeguards and said startups can use independent dealers, with Ohio’s association disputing Rivian’s claim of a convoluted process.