After years of stalled efforts and mounting political pressure, Washington State lawmakers are suddenly moving with unexpected speed on Senate Bill 6354, legislation that would allow Rivian and Lucid to sell vehicles directly to customers, similar to the exemption granted to Tesla back in 2014.
Under current state law, automakers must sell through franchised dealerships. Tesla remains the lone exception. Rivian and Lucid operate showrooms in Washington, but they are prohibited from completing vehicle sales at those locations.
A Compromise Years in the Making
SB 6354 was introduced on February 19 and quickly advanced out of the Senate Transportation Committee. The proposal is the result of unexpected behind-the-scenes negotiations between the EV startups and the Washington State Auto Dealers Association — a group that has historically opposed direct sales.
“I think on balance it’s a good compromise,” said Sen. Marko Liias, chair of the transportation committee.
The bill includes narrow eligibility criteria. To qualify, an automaker must:
- Be a U.S.-based company
- Exclusively manufacture battery electric vehicles
- Have at least 300 vehicles registered in Washington as of January 1
- Operate at least one in-state service facility
- Have never held a franchise agreement with a dealer
The legislation also prevents legacy automakers like Ford or Toyota from using subsidiaries to bypass the dealership model. In practice, the criteria appear tailored specifically to Rivian and Lucid, while excluding potential future entrants — including lower-cost Chinese EV brands.
Abigail Ramsden, Rivian’s western states policy manager, said, “The legislation honors the role of franchise dealerships while expanding access to electric vehicles for Washingtonians.”
Lucid echoed that sentiment. Daniel Witt, the company’s director of state public policy, called the bill “a testament to what is possible when EV manufacturers and dealers can come together … to support a framework that benefits Washington businesses and consumers alike.” (via KPQ)
Avoiding a Fight
The legislative push comes after Rivian contributed $4.5 million and pledged up to $20 million more in January to a political action committee — the Washington Coalition for Consumer Choice and Innovation — to pursue a 2026 ballot initiative if lawmakers failed to act. Some hearing attendees suggested the company was prepared to spend as much as $50 million to secure direct sales rights through voters.
Opposition Remains
Not everyone is on board. Curt Augustine of the Alliance for Automotive Innovation warned lawmakers, “We fundamentally believe all automakers should operate under the same set of rules.”
“To be clear, this special treatment didn’t end with Tesla, and it won’t end with Rivian and Lucid either,” he added.
Rep. Amy Walen, chair of the House Consumer Protection and Business Committee, has also expressed concerns about consumer protections and the bill’s limited scope, arguing, “We shouldn’t pick winners and losers and we’re doing it again.”
