Washington lawmakers are considering legislation that would change the state’s long-standing rule requiring automakers to sell vehicles only through franchised dealerships.
Under current law, most manufacturers cannot sell directly to consumers.
Tesla, as the first major electric vehicle manufacturer, was granted an exception in 2014, allowing it to sell vehicles directly to buyers in Washington.
Senate Bill 6354 would extend that direct-sales privilege to other EV manufacturers, such as Rivian and Lucid Motors.
Rivian operates four service centers in Washington — in Fife, Seattle, Bellevue and Bothell — with another one just on the other side of the border with Canada (in Richmond, British Colombia).
The company has a showroom in the University Village Shopping Center in Seattle, where Lucid also operates a studio.
The Newark, California-based premium EV maker operates a service center near the Seattle airport, and another one in Vancouver, about 150 miles from Seattle.
Senate Bill 6354
According to the local media outlet Washington State Standard, the bill resulted from private negotiations between the Washington State Auto Dealers Association and the firms.
It was introduced on February 19 and voted out of the Senate Transportation Committee last Friday, after a public hearing two days prior.
The bill limits direct sales to US-based companies that produce only battery electric vehicles (BEVs), operate at least one service facility in the state, and have never had a franchise agreement with a dealership.
The brands must have at least 300 vehicles registered in Washington as of January 1, 2026, signaling demand for their cars.
At the same time, the bill prohibits existing carmakers from using EV subsidiaries to sell directly to the public, protecting dealer contracts with legacy automakers.
For example, the VW Group is facing scrutiny in several states over its EV subsidiary in the US, Scout Motors, which the company plans to sell directly to customers in multiple locations.
Although Scout Motors has been licensed to sell directly to consumers in states like Colorado, the company faces lawsuits in California and Florida from other VW Group brands and dealer associations, who argue that its direct‑sales approach violates state franchise laws.
Lucid and Rivian React
Rivian representative Abigail Ramsden, a Senior Manager for State Policy in the West Coast stated last week that “the legislation honors the role of franchise dealerships while expanding access to electric vehicles for Washingtonians.”
Lucid‘s Director of State Public Policy Daniel Witt called the bill “a testament to what is possible when EV manufacturers and dealers can come together, after quite some time, to support a framework that benefits Washington businesses and consumers alike.”
Despite historically opposing direct sales, the Washington State Dealers Association views the bill as the “result of joint good faith deliberations,” Vicki Giles Fabre said, according to the local outlet.
It “provides the necessary safeguards to protect consumers and prevents manufacturers with franchisees from unfairly competing against their own dealers,” according to Fabre.
Opposition
Car manufacturers, however, excluded from negotiations, strongly oppose the legislation.
“We fundamentally believe all automakers should operate under the same set of rules,” said Curt Augustine, senior director for state affairs for the Alliance for Automotive Innovation.
According to Augustine, these EV manufacturers “could have dealerships and could be on the same side as the Washington state dealers.”
“To be clear, this special treatment didn’t end with Tesla, and it won’t end with Rivian and Lucid either,” he stated.
The representative warned that some of the largest EV manufacturers are government-supported Chinese firms, which could be encouraged to enter the US if bills like this one are approved.
Association leaders, however, preferred the bill’s limited scope — applying only to two companies— over a broader ballot battle that could allow direct sales for any EV maker, which could include China’s EV makers in the future.
Coalition Ballot Measure
Rivian invested $4.6 million in a public initiative to overturn the direct sales ban through Washington Coalition for Consumer Choice and Innovation’s plan to submit a ballot measure on the issue.
“We are currently pursuing a November 2026 ballot measure to make these choices available to Washington consumers,” the coalition stated earlier this year, adding that “all Washington drivers should have the option to test drive and purchase the vehicle of their choice.”
However, as the Senate Bill advances, the initiative may be put on hold.
“Obviously, our group is watching the Legislative process closely,” a coalition spokesman said in a statement, cited by the Washington State Standard.
To get on the ballot, initiative campaigns in Washington must submit at least 308,911 valid voter signatures to the Secretary of State by early July.
