Washington State’s bid to expand direct-to-consumer electric vehicle (EV) sales hit a wall as House Bill 1721 failed to advance out of the House Consumer Protection & Business Committee. The legislation, which would have allowed manufacturers like Rivian and Lucid to sell directly to customers alongside Tesla, lacked the votes to move forward, leaving Tesla as the sole EV maker with that privilege in the state and intensifying focus on two competing Senate bills—SB 5592 and SB 5377, both of which also relate to direct EV sales.
HB 1721 aimed to rewrite a state law barring all EV manufacturers, except Tesla, from direct sales. Tesla has been exempt from this law for a decade. HB 1721 sought to level the playing field by also allowing companies like Rivian and Lucid to sell directly to the consumer, while including measures to ease traditional auto dealers into a zero-emission market.
Despite support from environmentalists and a coalition including the Washington Clean Car Choice Coalition, fierce opposition from dealers, who argued it would gut local businesses, doomed its chances. (via Washington State Standard)
The failure of HB 1721 casts a shadow over Senate Bill (SB) 5592, its companion bill, which is still sitting in the Senate Labor & Commerce Committee. Introduced on January 30, SB 5592 shares the goal of expanding direct EV sales but hasn’t progressed since its February 4 public hearing, where dealers voiced similar objections. While SB 5592 lacks HB 1721’s explicit dealer-support provisions, its fate now looks grim, with the House setback signaling entrenched resistance.
Meanwhile, SB 5377 offers a starkly different vision. Introduced on January 20, it aims to repeal Tesla’s direct-sales exemption, forcing all EV makers to use dealerships. Also sitting in the Labor & Commerce Committee after its February 4 hearing, SB 5377 has dealer backing and could gain traction following HB 1721’s demise. Dealers, who thwarted a similar direct-sales effort last year, see it as a way to protect their model against what they call an unfair advantage.
Washington’s EV sales debate remains gridlocked. HB 1721’s failure preserves Tesla’s unique edge, while SB 5592’s prospects dim and SB 5377 waits in the wings. With the legislative session running until mid-March, the Senate could still tip the scales—either doubling down on dealerships or reviving direct-sales hopes. For now, the status quo holds, frustrating EV makers and climate advocates alike.
