In an epic win for automakers such as Tesla and Rivian, and electric vehicles as a whole, the Colorado Senate passed SB20-167. If the Colorado House also approves the bill, EV producers will be able to sell their products directly to consumers. They can then bypass the traditional dealership system, as Tesla has been doing in most other states.
In order to qualify, according to the bill, the automaker must sell only EVs and have no prior traditional system of dealerships already in place. This gives new companies that are making EVs a chance to succeed in a very competitive market.
Holy shit! The bill passed the Senate 20-12! On to the House.
— Sean Mitchell (@seanmmitchell) February 28, 2020
Automotive News reported that Rivian lobbied in favor of this law in the weeks that led up to the vote. The bill was delayed twice, but finally came up for its final vote after the addition of an amendment that keeps traditional manufacturers (non-EV automakers) from the direct-to-consumer marketplace. Tim Jackson, of the Colorado Automobile Dealers Association, compares this to putting lipstick on a pig. This is in reference to the amendment allowing EV manufacturers to sell directly to customers and skip the dealer process entirely.
From a consumer’s point of view, having this option makes sense. It gives us a choice — we can buy an EV from a traditional automaker through a dealer, or we can buy directly from an EV company.
Dealing with dealerships is a well-known stressor when it comes to buying a car. Many people hate the process and have complained about how they have been treated. Sean Mitchell recently addressed it in his video titled, “Why The Dealership Model Is Anti-American.” The dealership industry is a trillion-dollar industry that makes its money by selling vehicles to consumers as a middle-man. The process is one of the most dreaded in the overall marketplace/consumerism.
— Sean Mitchell (@seanmmitchell) February 29, 2020
This is one reason why legacy automakers have gone from ignoring automakers such as Tesla and Rivian to fearing them. The newcomers can save consumers money by bypassing the middle-man and can treat their customers in ways people prefer — with straight prices, no haggling, no pushy salespeople, etc.
There are still 19 states where direct sales are limited or banned. This is due to the rush a few years ago by automakers to lobby for “anti-Tesla legislation.”