Rivian and Lucid are right up there with Tesla for being excluded from the banning of direct-to-consumer car sales by Governor DeSantis in Florida.
Rivian and Lucid are among the companies, along with Tesla, that have not been included in Governor Ron DeSantis' ban on direct-to-consumer car sales in Florida.
This bill that was signed last week includes a provision that forbids car manufacturers from directly selling vehicles to consumers within the state, mandating their reliance on franchised dealerships instead.
However, a specific exemption in the legislation permits electric car companies, such as Tesla, to continue selling directly to customers if that has been their established mode of operation.
This carve-out acknowledges and respects their existing direct-to-consumer sales approach. And this exemption also applies to startups like Rivian and Lucid.
Both companies have followed Tesla's example by adopting direct-to-consumer sales strategies. They would also be exempt from the requirement to use franchised dealerships.
Traditional automakers have no intention of abandoning the dealership model that has been in place for decades, although it has required some persuasion to gain widespread acceptance.
For instance, Ford has successfully convinced the majority of its dealerships to embrace the sale of electric vehicles while simultaneously eliminating the often disliked aspect of dealership transactions: haggling.
In fact, franchised dealer lots and their service departments play a vital role in facilitating test drives of new electric vehicles and, more importantly, ensuring their ongoing maintenance and repairs.
Interestingly, GM observed a significant influx of Tesla customers at its service centers last year, indicating the challenges it faced in keeping up with the rapid growth of its own customer base.