Driving the news: Rivian $RIVN ( ▼ 4.2% ) is suing Ohio to overturn the state's ban on direct car sales, claiming it's unfair that Tesla gets to sell directly while other EV makers are blocked, reports The Verge.
For context: A 2014 Ohio law grandfathered Tesla into direct sales but shut the door on future manufacturers after heavy lobbying by the state's dealer association.
Rivian can sell directly in 25 states, but Ohio customers have to buy from out-of-state locations and get their cars shipped to local service centers.
The company calls the ban "irrational in the extreme" and argues it's just protecting dealer profits at consumers' expense.
Why it matters: This is part of a much bigger fight between EV startups and the powerful dealer lobby that's controlled car sales for decades. Traditional dealers have used franchise laws and lobbying muscle to make direct sales as difficult as possible, forcing companies like Rivian to fight state-by-state battles just to reach customers.
What we're watching: Whether Rivian can break through Ohio's dealer protections and if success there encourages similar challenges in other states with direct-sales bans.
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