<p>Executives from EV makers <strong>Rivian Automotive Inc.</strong> (NASDAQ:RIVN) and <strong>Lucid Group Inc.</strong> (NASDAQ:LCID) say that the state franchise dealership laws are hindering EV adoption across the U.S.</p>



<h2>Dealership Laws Posing Challenges</h2>



<p>On Monday, Business Insider published an interview with executives from Rivian and Lucid, sharing views on the laws that could hinder EV adoption, as automakers can not control pricing and educate first-time EV buyers.</p>



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<p>Rivian’s director of state public policy, <strong>Beau Whitman</strong>, lamented the situation in Ohio, where the EV company cannot sell vehicles, but prospective customers in the state could get vehicles serviced. Customers may have to pay to get temporary Illinois tags before completing power-of-attorney forms, the report said. </p>



<p>Whitman called the dealership laws “restrictive,” “complicated,” and “convoluted.” Whitman’s comments were refuted by the Ohio Automobile Dealers Association, which pointed out that the company can sell vehicles via a dealership of its choice, the report said. </p>



<p><strong>Daniel Witt</strong>, who is the head of public policy, also criticized the laws, sharing that they can create some “awkward” interactions with customers, also acknowledging that sales representatives weren’t “legal experts” and dealt with several “red lines.”</p>



<h2>Dealership Laws And Tesla</h2>



<p>U.S. laws prohibit manufacturers from selling their cars directly to customers, requiring prospective buyers to purchase vehicles via dealerships. </p>



<p>It’s worth noting that Tesla has had several disputes with states over the dealership laws, with the <strong>Elon Musk</strong>-led automaker selling directly to customers through its own showrooms. Musk had once shared during a 2013 interview with The Texas Tribune that Tesla selling vehicles via dealers could create a conflict of interest, as the majority of dealers sell gasoline vehicles. </p>



<h2>Rivian’s LiDAR Push, Earnings Beat</h2>



<p>Rivian is developing its own LiDAR sensors in the U.S., weighing a plan to manufacture its own sensors using Chinese technology after the company had unveiled its self-driving ambitions and its Universal Hands-Free technology last year in December.</p>



<p>The automaker reported a first-quarter revenue of $1.381 billion, which was up 11% YoY. The revenue figure also beat the market consensus of $1.363 billion. However, its revenue of $908 million comprised over $468 million of revenue from its fleet deal with <strong>Amazon.com Inc.</strong> (NASDAQ:AMZN).</p>



<h2>Lucid Eyes Midsize Production Ramp</h2>



<p>Meanwhile, Lucid is also ramping up its efforts to develop a midsize, sub-$50,000 EV, as interim CEO <strong>Marc Winterhoff </strong>said that the move would let the automaker target a broader customer base and help offset sales from Rivian’s electric crossover SUV R2, as well as Tesla’s Model Y SUV.</p>



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<p><em>Check out more of Benzinga's Future Of Mobility coverage by</em> following this link.</p>



<p><em>Photo courtesy: Tada Images / Shutterstock</em></p>

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<p>Executives from Rivian and Lucid have criticized U.S. dealership laws, claiming they hinder electric vehicle (EV) adoption by limiting manufacturers' control over pricing and customer education. Rivian's Beau Whitman highlighted challenges in Ohio, where the company cannot sell vehicles directly. The Ohio Automobile Dealers Association countered that Rivian can sell through a dealership. Tesla has faced similar issues with direct sales. Rivian reported a revenue increase of 11% YoY, while Lucid is focusing on developing a sub-$50,000 EV to broaden its market appeal.</p>

- Executives from Rivian and Lucid argue that state franchise dealership laws are obstructing electric vehicle (EV) adoption in the U.S. by limiting pricing control and customer education for first-time buyers.  
- Rivian's policies director criticized these laws as “restrictive” and “complicated,” particularly highlighting issues faced in Ohio, while the Ohio Automobile Dealers Association disputed this claim.  
- Both companies are also focusing on new vehicle developments, with Rivian reporting a revenue increase and Lucid aiming to produce a sub-$50,000 EV to attract a wider customer base.

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Tesla Rivals Rivian, Lucid Say 'Restrictive' Dealership Laws Are Hurting EV Adoption In US