Rivian Sues Ohio Over Direct Sales Ban, Cites Unfair Tesla Exception

Rivian has filed a federal lawsuit against Ohio’s Department of Motor Vehicles, challenging the state’s partial ban on direct-to-consumer vehicle sales. The EV maker argues that the law is unconstitutional, favors legacy dealerships, and creates an uneven playing field by granting Tesla a carve-out exemption.

Rivian’s Legal Complaint

In its complaint, Rivian describes the restriction as “irrational in the extreme” and accuses the state of prioritizing dealer profits over consumer rights and marketplace competition. Ohio’s current policy prevents Rivian and other EV companies from selling vehicles directly to buyers, unless they go through franchised dealerships. 

However, Tesla reached a deal with the state’s dealership association years ago that allowed it to open three company-owned stores, an arrangement Rivian says gives Tesla an unfair market advantage. “Ohio’s prohibition also just makes no sense,” Rivian argued in its lawsuit, noting that it can service, rent, and even deliver cars in Ohio, but not complete a sale, according to The Verge.

Rivian vs Ohio’s State-Level Dealership Laws

This is Rivian’s first lawsuit challenging a state’s direct-sales restriction, though other EV makers have taken similar action. Tesla has fought multiple state-level battles, recently settling a case in Louisiana. Volkswagen’s Scout sub-brand is currently being sued in California over a plan to bypass dealerships entirely. 

Rivian’s Chief Administrative Officer Mike Callahan emphasized that “consumer choice is a bedrock principle of America’s economy,” and warned that laws like Ohio’s reduce competition, limit options, and increase costs.

“Rivian believes that consumers should be able to choose the vehicles they purchase. 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,” Callahan said.

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