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Washington Clears Narrow Direct-Sales Path for Rivian and Lucid

A threatened ballot initiative forced a narrow carveout for Rivian and Lucid.

Overview

  • Washington lawmakers approved a limited change that lets Rivian and Lucid sell cars straight to buyers after years of dealer roadblocks.
  • Rivian’s threat to take the issue to voters in a costly ballot fight, estimated at up to $30 million, pushed dealer groups to drop firm opposition and accept a tight exemption.
  • The carveout covers only Rivian and Lucid, leaving other brands under franchise rules, while Tesla already sells directly in the state under an earlier allowance.
  • Dealer associations say the franchise system protects competition, pricing, repairs, and financing, while Rivian argues direct sales give it more control, better margins, and a cleaner buying experience.
  • Direct sales typically let customers order online at set prices with fewer steps in the showroom, which Rivian says aligns with consumer preferences it measured in internal polling.