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Home»Technology
Technology

rewrite this title Tesla could lose EV sales advantage in Washington

10 months agoNo Comments4 Mins Read
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The Tesla showroom at University Village in Seattle. (GeekWire Photo / Lisa Stiffler)

Tesla could soon lose its electric vehicle sales advantage as Washington state lawmakers are taking their third shot at legislation that would give Rivian, Lucid and others the right to offer test drives and sell their vehicles directly to consumers.

Tesla is the sole manufacturer in Washington with that marketing deal — all other carmakers must sell through franchise dealerships.

The proposal comes as Tesla founder Elon Musk has taken a highly controversial leadership role in the Trump administration and become increasingly polarizing. Some Tesla drivers are slapping “I Bought This Before We Knew Elon Was Crazy” bumper stickers on their vehicles, and a fraction of drivers internationally say they are selling or thinking of selling their Teslas because of Musk.

The EV sector in general is facing a slate of challenges as President Trump is unraveling policies supporting the shift from climate-warming combustion vehicles to EVs.

Today the Senate Committee on Labor & Commerce is scheduled to hear testimony on SB 5592, a measure with both Democratic and Republican sponsors. The law would:

Allow zero-emissions vehicles to be sold directly to consumers provided the automaker establishes at least two service centers in the state and offers mobile vehicle servicing.

Allow online direct sales of the vehicles, with delivery through a designated service center, delivery center or a partnership dealer.

Require vehicle warranties and options for repairs.

Require the Washington State Department of Commerce to create a program for training technicians in zero-emission vehicle repairs and to assist traditional auto dealers in the shift to EV sales.

The House has a companion bill, HB 1721, which also has bipartisan support.

Backers of the effort have formed a group called the Washington Clean Car Choice Coalition. The organization polled state residents and found 84% support an end to the ban on direct car sales for non-Tesla EVs. Similar legislation failed last year and in 2021.

The coalition is pushing the measure to help boost EV sales.

“We need to make it easier for Washingtonians to experience and lease or own zero-emission vehicles and to use electricity as a transportation fuel,” said Isaac Kastama, an advisor with the nonprofit Clean & Prosperous Washington, in a statement. “Washington State should be the cheapest, easiest state to buy a clean car, and clean car choice is an important step in making that happen.”

Washington is among the states that joined California in requiring all new vehicles sold in the state to be zero carbon emissions by 2035 — though this is among the initiatives in President Trump’s crosshairs. The requirement applies to passenger cars, light-duty vehicles, and medium-duty vehicles such as larger pick-up trucks and SUVs.

The legislation reworks a direct sales allowance that lawmakers granted exclusively to Tesla more than a decade ago. The law exists to prevent auto manufacturers from competing against franchised dealerships.

Not surprisingly, the dealers have lobbied hard against the proposed change. They say that manufacturers’ stores are more likely to be found only in urban settings and in fewer locations, offering limited access to repairs and recall fixes. The direct sales route eliminates the competition between auto dealerships, opponents to the legislation say.

Oregon, California, Idaho, Arizona, Nevada and most other Western states allow all EV manufacturers to offer direct sales. Consumers in Washington, Montana, New Mexico and other states who want to buy EVs that are not sold through dealerships must either purchase the vehicle online and get it delivered, or travel out of state to shop.

For now, Rivian has a “space” at Seattle’s University Village shopping center and Lucid has a “studio” at the upscale outdoor mall. Shoppers can get inside parked cars and learn about the vehicles.

But unlike a Tesla showroom — including one that’s located at the same mall — Rivian and Lucid cannot give shoppers a test drive, sell them a car, or discuss financing for purchases.

RELATED: Rivian, Lucid and other EVs stuck in park by failed effort to change car sales laws in Washington

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