Rivian just sued Ohio to sell its EVs directly to customers in the state. The startup filed the lawsuit Monday in federal court against Ohio’s Bureau of Motor Vehicles (BMV). Rivian claims Ohio’s ban on direct sales hurts consumers by limiting competition and choice.
Currently, Rivian sells direct in 25 states plus D.C., but Ohio forces buyers to purchase vehicles out of state where direct sales are allowed, then ship them back to Ohio service centers.
The issue started with a 2014 Ohio law. That law was passed after lobbying by the Ohio Automobile Dealers Association (OADA). It gave Tesla a special carve-out but blocked other EV makers like Rivian from getting direct-sale licenses. 
Rivian’s lawyers call the ban “irrational in the extreme” and say it “reduces competition, decreases consumer choice, and drives up consumer costs and inconvenience — all of which harm consumers — with literally no countervailing benefit.”
Rivian demands Ohio allow it to apply for a dealership license to sell direct, citing Tesla’s longstanding direct sales license in Ohio since 2013.
Mike Callahan, Rivian’s chief administrative officer, said:
“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.”
“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.”
Rivian has fought and won similar battles. In 2021, it secured dealership licenses in Illinois after that state’s dealer association sued to block direct sales. The attempt failed.
Meanwhile, Lucid Motors sued Texas in 2022 over a direct-sales ban. Texas courts ruled against Lucid, but the company is appealing.
Ohio’s BMV and OADA did not immediately comment. The lawsuit marks the latest push by new EV makers to crack entrenched dealership rules and sell direct to buyers.
