Rivian is stepping up its efforts to expand direct-to-consumer electric vehicle (EV) sales, throwing its support behind new legislation in Iowa that could change how EVs are purchased in the state. The proposed bill, Iowa Senate Study Bill 3067, would allow manufacturers without traditional franchise dealer networks—including Rivian, Tesla, and Lucid—to sell vehicles directly to customers.
Currently, Iowa law requires automakers to sell vehicles through licensed franchise dealerships, effectively blocking companies like Rivian from operating their own retail locations or selling directly online. As a result, Iowans interested in buying a Rivian or Tesla must travel to neighbouring states such as Illinois, Minnesota, or Missouri to complete their purchase.
The legislation aims to eliminate that barrier by creating a legal pathway for EV manufacturers without dealership agreements to sell directly while preserving protections for existing franchised dealers.
“Every day, Iowans make purchases directly from a manufacturer – a practice which supports consumer choice, enhances pricing transparency, and offers convenience for Iowa families,” said Aubrey Coleman, Senior Public Policy Manager for Rivian. “Unfortunately, antiquated laws from the last century prevent Iowans from having the freedom to purchase an electric vehicle directly from a manufacturer. Rivian supports Iowa SSB 3067 because it aligns with the state’s continued mission to support consumer choice and create an environment where its citizens have the freedom to flourish.”
The bill has already cleared an important early hurdle, passing a Senate Commerce Subcommittee in a 2–1 vote. However, it still faces uncertainty, as lawmakers have yet to advance it further, and a looming legislative deadline later this month could determine its fate.
Iowa is one of roughly 18 states that continue to prohibit direct manufacturer vehicle sales, reflecting longstanding laws designed to protect the traditional dealership model. Rivian has been actively advocating for the change, even bringing some of its electric vehicles to the Iowa State Capitol for lawmakers to see firsthand.
Supporters of the bill argue that allowing direct sales would give consumers more options while simplifying the buying process. Direct sales models eliminate dealership markups and allow manufacturers to maintain consistent pricing and customer experience, which has been central to Rivian’s retail strategy.
Not surprisingly, traditional auto dealers in Iowa have raised concerns, arguing that allowing EV companies to bypass the franchise system would create an uneven playing field. To address those concerns, the bill includes provisions to prevent established automakers from creating new brands solely to bypass existing dealership agreements.
Iowa is just one front in a broader national push by Rivian to expand direct sales access. Earlier this year, the company pledged $4.6 million to support a ballot initiative in Washington State aimed at overturning similar restrictions. Unlike Tesla, which has secured exemptions in some states over time, Rivian continues to face regulatory barriers that limit its ability to sell vehicles directly in key markets.
