This story was originally published mynorthwest.com.
A new Washington law is set to expand the way electric vehicles are sold, allowing more manufacturers to bypass traditional dealerships and sell directly to consumers.
The legislation clears the way for companies like Rivian and Lucid Motors to conduct direct-to-consumer sales in the state, ending Tesla’s longtime status as the only automaker allowed to do so.
Supporters said the change would make it easier for Washington residents to purchase electric vehicles and could accelerate adoption.
“It’s really exciting to me when I see them, because I know these vehicles driving in my neighborhood are not spreading diesel pollution,” Leah Misick, Washington legislative director for Climate Solutions, told KIRO NewsRadio. “It makes it easier for people to have access to these EVs, which are obviously less polluting, but they also save people a lot of money because they don’t have to go to a gas station to fill up.”
Opponents believe this will reduce competition and hurt local dealerships.
For years, auto dealers have opposed the expansion of direct sales, arguing that it weakens the franchise system, including Greg Riordan, who owns 13 different dealerships in Western Washington. In February, Reardon testified before the Senate Transportation Committee and reminded lawmakers that manufacturers selling directly could reduce competition and hurt local dealerships without guardrails.
Reardon said, “Allowing franchise manufacturers to compete directly against us will quickly put us out of business.”
However, because lawmakers had put in place specific restrictions by the time the bill reached the Senate, Reardon concluded her testimony by saying, “I respectfully ask you to support SB 6354.”
Many carmakers, such as Ford Motor Co. and General Motors, are concerned about the new state law. Craig Orlan of American Honda Motor Co. testified in a Senate committee that his company’s opposition continues.
“I am disappointed to see so many dealers supporting this legislation,” Orlan said. “Which signals the slow erosion of the franchise system that has proven beneficial to manufacturers, dealers and consumers.”
The law includes strict eligibility requirements. Automakers must be US-based, produce only electric vehicles and have no existing franchise dealership agreements. They must also meet minimum thresholds for service infrastructure and vehicle registration in Washington – criteria that effectively limit Rivian, Lucid and Tesla’s participation.
Company representatives said this change will open up new opportunities in the state.
“Lucid is proud to invest in American manufacturing innovation and jobs while supporting states like Washington in meeting climate and transportation goals,” Lucid representative Daniel Witt said during Senate testimony.
“We are fully committed to meeting all obligations while maintaining the highest standards of consumer protection and transparency,” said Abigail Ramsden, who manages western states policy for Rivian Automotive.
The measure also includes enforcement provisions, including fines of up to $10,000 per vehicle for unauthorized direct sales. It increases certain vehicle and dealer fees to help finance electric vehicle rebates, low-income access programs and transportation projects.
Electric vehicles already have a growing market share in Washington. State data shows EVs could account for about 20% of new car sales in the second half of 2024.
Rivian vehicles are increasingly appearing in Washington communities, including electric delivery vans used by Amazon.
