Washington opens Tesla's direct EV sales loophole to Rivian and Lucid
Airfind news item
By Fred Lambert
Published on March 18, 2026.
Washington state legislators have voted to allow Rivian and Lucid to sell electric vehicles directly to consumers, ending a 12-year arrangement that allowed Tesla exclusive access to direct sales in the state. The law, which passed the House 84-9 and the Senate 47-2, undermines the franchise dealership model that has long protected traditional automakers in Washington. Since 2014, Tesla was the only manufacturer allowed to bypass locally owned dealerships and sell directly to buyers. The fight over direct sales stalled for years due to efforts by the state's powerful car dealer lobby. Rivian pledged $4.6 million to a ballot initiative that would have allowed broad direct sales, potentially undermining the franchise model. The bill also raises Washington’s vehicle dealer documentary service fee from $200 to $250, with a portion of the increase directed towards EV rebates for low-income households.
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