Rivian is suing Ohio over the state’s “irrational” ban on direct car sales
EV maker Rivian is suing Ohio’s department of motor vehicles to end a rule that it says provides Tesla special treatment in the state.
Ohio bans car companies from selling vehicles directly to consumers, instead requiring all automakers to go through third-party dealerships. According to Rivian, Ohio granted a carve-out to Tesla in 2013. Now, Rivian wants that carve-out for itself.
In the lawsuit, Rivian wrote that it “wants to sell its vehicles directly to consumers in Ohio, just like Apple sells iPhones and Tesla, Inc., sells Teslas.” Per the filing:
“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.”
Rivian currently sells directly to consumers in 25 states and Washington, DC.
In the lawsuit, Rivian wrote that it “wants to sell its vehicles directly to consumers in Ohio, just like Apple sells iPhones and Tesla, Inc., sells Teslas.” Per the filing:
“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.”
Rivian currently sells directly to consumers in 25 states and Washington, DC.
