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Rivian Sues Ohio Over Ban on Direct Vehicle Sales, Citing Consumer Harm and Unfair Competition
August 4, 2025
Electric vehicle maker Rivian has filed a lawsuit in federal court challenging Ohio’s ban on direct-to-consumer auto sales, marking the latest chapter in the ongoing battle between EV startups and the powerful dealership lobby.
In the lawsuit, filed Monday, Rivian accuses Ohio’s Bureau of Motor Vehicles (BMV) of unlawfully blocking its direct-sales business model. The company argues that the restriction not only limits consumer choice but also drives up costs and reduces competition, all without delivering any public benefit.
“Ohio’s prohibition of Rivian’s direct-sales-only business model is irrational in the extreme,” the company said in its court filing, asserting that the law unfairly favors traditional dealership networks.
Rivian is currently permitted to sell directly to consumers in 25 states and Washington, D.C. In Ohio, however, customers must purchase Rivian vehicles from out-of-state locations, with the cars later shipped to service centers within the state.
At the heart of Rivian’s challenge is a 2014 Ohio law that allowed Tesla to sell directly to consumers through a special exemption — a carve-out Rivian claims was created after lobbying by the Ohio Automobile Dealers Association. While Tesla continues to operate under that exemption, the law effectively blocks any new EV manufacturers from obtaining the same type of license.
Rivian is asking the court to allow it to apply for a dealership license, contending that the state’s refusal violates principles of fairness and consumer rights.
“Consumer choice is a bedrock principle of America’s economy,” said Rivian Chief Administrative Officer Mike Callahan in a statement. “Ohio’s archaic prohibition against the direct sales of vehicles is unconstitutional, irrational, and harms Ohioans.”
The BMV has not publicly responded to the lawsuit, nor has the Ohio Automobile Dealers Association.
Rivian has previously faced and won similar legal battles. In 2021, it secured the right to sell directly in Illinois after overcoming resistance from that state’s dealership association. Lucid Motors has also challenged direct-sales bans, though a recent ruling in Texas went against the EV company, which has since appealed.
The outcome of Rivian’s case could have wider implications for how new automakers navigate state-by-state dealership laws — and how consumers access electric vehicles in the years ahead.
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