Washington’s EV Sales Laws Just Took A Big Turn

Back around the 1930s laws were enacted to prevent car manufacturers from bypassing their franchise holders and selling directly to the public at the time it was a very reasonable law to put into place from car manufacturers undercutting their sales and putting them out of business.  

Then along comes Tesla 

Tesla had a very different kind of car, an electric car, and a very different kind of business model. Using the internet and offering direct sales to their customers. Franchise car dealerships feeling threatened by this. Invoked. the franchise law from the 1930s to block tesla from selling their vehicles. won their case and were allowed to sell their new electric vehicles online. 

In 2014, Washington was one of the states that voted to allow Tesla to sell their cars online, but the law only allowed tesla to do it 

Then along came a multitude of other EV manufacturers 

EV manufacturers Rivian and Lucid had showrooms in the Seattle area but were not allowed to sell their vehicles in Washington state. Anyone who wanted to buy a Rivian or Lucid had to go to Oregon and take delivery there. boosting Oregon’s tax revenue but not Washingtons. 

Now the Washington state legislature has voted again to create a new law that allows other EV manufacturers to sell their vehicles directly to the Washington public 

According to electrek.com,
‘Washington state legislators just voted overwhelmingly to allow Rivian and Lucid to sell electric vehicles directly to consumers, ending a 12-year arrangement that gave Tesla exclusive access to direct sales in the state.
Senate Bill 6354 passed the House 84-9 and the Senate 47-2 — a bipartisan blowout that now heads to Governor Bob Ferguson’s desk for signature.’ 

 So, what changed 

Rivian stepped up and pledged $4.6 million to back an initiative. that would have eliminated franchise dealers' protected status completely. The possibility of that initiative showing up on the 2026 November election caused the dealerships to come to the negotiating table. The result was the bill that was passed in the Washington state legislature, SB 6354. 

The legislation is also tailored to only allow Rivian and Lucid to sell their vehicles in Washington state. Any late comers to the game are out. 

That eliminates future car manufacturers like Apterra, Slate, VinFast, Rimac, and all electric cars of Chinese manufacture. 

There are still 14 states that do not allow tesla or any other car manufacturer to sell directly to the public