This story was originally published on mynorthwest.com.
A new Washington law is set to expand how 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 operate direct-to-consumer sales in the state, ending Tesla’s long-standing status as the only automaker permitted to do so.
Supporters said the change will make it easier for Washington residents to purchase electric vehicles and could accelerate adoption.
“It’s actually really exciting for me when I see them, because I know these vehicles driving all over my neighborhood are not spewing out diesel pollution,” Leah Missik, the Washington legislative director for Climate Solutions, told KIRO Newsradio. “It just makes it all the easier for folks to access these EVs, which obviously are less polluting, but they end up saving people quite a lot of money because they don’t have to go to the gas station and fill up.”
Opponents believe it would reduce competition, harm local dealerships
For years, auto dealers have opposed expanding direct sales, arguing it undermines the franchise system, including Greg Rairdon, who owns 13 different dealerships across Western Washington. In February, Rairdon testified before the Senate Transportation Committee and reminded lawmakers that manufacturers selling directly could reduce competition and harm local dealerships without guardrails in place.
“Allowing franchise manufacturers to compete directly against us would quickly put us out of business,” Rairdon said.
However, because lawmakers had imposed specific guardrails by the time the bill reached the Senate, Rairdon ended his testimony, saying, “I respectfully ask that you support SB 6354.”
Many car manufacturers, such as Ford Motor Company and General Motors, remain concerned about the new state law. Craig Orlan with American Honda Motor Company testified in the Senate committee that his company remains opposed.
“I’m disappointed to see several dealers supporting this legislation,” Orlan said. “Which signals a slow erosion of a franchise system that has proven to be beneficial for manufacturers, dealers, and consumers.”
The law includes strict eligibility requirements. Automakers must be U.S.-based, produce only electric vehicles, and have no existing franchise dealership agreements. They also must meet minimum thresholds for service infrastructure and vehicle registrations in Washington — criteria that effectively limit participation to Rivian, Lucid, and Tesla.
Company representatives said the change opens 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,” Daniel Witt, a Lucid representative, said during Senate testimony.
“We are fully committed to meeting all obligations while upholding the highest standards of consumer protection and transparency,” Abigail Ramsden, who manages western states policy for Rivian Automotive, said
The measure also includes enforcement provisions, with penalties of up to $10,000 per vehicle for unauthorized direct sales. It raises certain vehicle and dealer fees to help fund electric vehicle rebates, low-income access programs, and transportation projects.
Electric vehicles already account for a growing share of the market in Washington. State data show EVs accounted for about 20% of new car sales in the second half of 2024.
Rivian vehicles are increasingly visible in Washington communities, including electric delivery vans used by Amazon.
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