Washington in Focus: Rivian and Lucid May Sell EVs Direct-to-Consumer Under New Bill

Washington is considering SB 6354 to allow direct sales by Rivian and Lucid, facing resistance from dealerships and changes to transportation funding.

Washington is on the verge of a regulatory change that could allow Rivian and Lucid to sell electric vehicles directly to consumers, generating sharp debates among local dealerships.

Currently, the rule prevents manufacturers from competing directly with franchised dealership networks, keeping Tesla as the primary example of direct sales in the region.

What SB 6354 Proposes

The bill creates an exception for Rivian and Lucid, maintaining safeguards to prevent abuse and including the exclusion of other manufacturers and new market entrants. It also raises the documentary service fee from $200 to $250, with oversight until December 31, 2036.

• Exception for Rivian and Lucid to sell directly to consumers.
• New entrants and other manufacturers are excluded from the exception.
• Additional revenue: 25% goes to the Electric Vehicle Account (subsidies for low-income families) and 75% to the Multimodal Transportation Account (public transport and infrastructure).

Support, Concerns, and Objections

Several local dealership owners spoke in favor of the measure, but with reservations. Greg Rairdon, owner of 13 dealerships in the region, warned that further opening up direct sales could create a competitive advantage that is difficult to match and put businesses at risk.

However, representatives from industry associations and manufacturers, such as the Alliance for Automotive Innovation and American Honda Motor Company, expressed opposition, highlighting the benefits of the franchise model for communities, consumers, and the industry itself.

The movement to open up direct sales gained traction two years ago when EVs and environmental groups attempted to promote similar legislation; at the time, the change did not succeed. Rivian then launched the Washington Coalition for Consumer Choice and Innovation and has already invested millions in the effort, according to state records. To bring it to a vote in November, 308,911 supporters would be needed by July.

Impacts on Calendar and Budget

If SB 6354 passes, signatures for the popular initiative would no longer be necessary. The proposal also alters the financial design of state funds for EVs and transportation, and the legislative session is scheduled to end on March 12.

It is worth remembering that in other western states, such as Oregon, California, Idaho, Arizona, and Nevada, direct EV sales are already permitted for manufacturers.

Conclusion and Participation

For those following the topic, you might ask: Do you believe opening the market to Rivian and Lucid would bring more benefits to consumers or harm local dealerships?

Leave your opinion on the matter in the comments.