Rivian is stepping up its push to eliminate state laws that prevent electric vehicle manufacturers from selling directly to consumers in the United States.
A month after investing more than $4 million to support a public initiative aimed at overturning these restrictions in Washington state, the company has now issued a statement backing a similar move in Iowa.
Rivian has “applauded the introduction of Iowa Senate Study Bill 3067, which will allow Iowans the freedom to purchase electric vehicles directly from the manufacturer.”
The bill is currently under review by the Iowa Senate Commerce Committee, after being passed out its dedicated subcommittee on Tuesday.
Under Iowa law, a company cannot sell new vehicles at retail in the state unless it is a licensed motor-vehicle dealer, with both authorization and a dealership license.
Given that, manufacturers that don’t typically use franchise dealers — like Rivian or Tesla — cannot directly sell vehicles to customers in the state.
The bill includes safeguards against established automakers creating new brands to circumvent franchise agreements and sell directly to consumers.
Rivian Retail Network
Rivian currently operates nearly 100 locations across North America, including retail and service facilities, with the most recent opening in Pennsylvania earlier this month.
Most of these spaces are located on the West Coast, predominantly in California.
The company is also expanding its presence on the East Coast. Last year, it established its headquarters in Atlanta and began construction of its plant in Georgia.
In Iowa, however, it operates only one service center, which opened last year near the Nebraska border. It has not opened any retail locations in the state.
According to Rivian, Iowa “currently has some of the most restrictive car-buying laws not only in the Midwest but in the nation, with antiquated laws that do not embrace free-market principles in automobile purchasing.”
The EV maker noted that Iowans who want to purchase one of its vehicles must “currently must travel out of state, often to Missouri, Illinois, or Minnesota, to test drive the vehicle, consult Rivian product experts about the vehicle, and explore pricing.”
To the EV maker, “those purchasing burdens stifle consumer choice.”
Other State Bans
In several states, a similar ban on direct sales by EV manufacturers is in place.
It is the case of North Dakota, which maintains that the separation between manufacturers and dealerships is important to protect both franchise dealers and consumers.
Late last year, Tesla sued North Dakota’s Department of Transportation after it rejected its applications to open direct-to-consumer showrooms in the state.
Tesla claimed it should be exempt from the law since its sales model relies exclusively on direct-to-consumer sales throughout the United States.
The company has also filed petitions against similar direct-sales bans in Louisiana, Wisconsin, and several other states.
In other states, Tesla has been granted an advantage over other EV makers since it was the first major electric vehicle manufacturer in the US, often being exempt from direct-sales bans.
While Tesla has exclusivity to sell directly to customers in the state of Washington, it could end as new EV makers like Rivian and Lucid Motors emerge.
The Washington Coalition for Consumer Choice and Innovation plans to submit a ballot measure on the issue, which has been supported by the Irvine-based EV maker.
“We are currently pursuing a November 2026 ballot measure to make these choices available to Washington consumers,” the coalition stated.
