Breather For Tesla, Rivian, Lucid As Michigan Bill Seeking To Ban Direct Auto Sales Abandoned

A proposed Michigan bill that would have killed the direct-sales model of electric vehicle companies like Tesla Inc TSLA, Lucid Motors, and Rivian has been shelved indefinitely, CNET Roadshow reported Monday.

What Happened: A Lucid spokesperson told CNET that the state senate decided last Friday not to take the bill — HB 6233 — before its recess and there are no plans to address it either.

“Lucid Motors is pleased that HB 6233 failed after the Michigan Senate ended its session without taking action on the bill,” the company said in a statement.

The automaker termed the legislation already passed by the Michigan House of Representatives as “anticompetitive.”

“These legislative efforts — and similar efforts in other states — are clearly driven by special interests, not consumers, as nearly 70% of all EVs sold in Michigan in 2019 were sold directly to consumers,” Lucid said, as per CNET.

Why It Matters: Amazon.com, Inc AMZN-backed Rivian, Lucid, Tesla, and others would have been banned from making direct sales as a result of the bill backed by the state’s auto dealers. 

Tesla and Michigan had arrived at a settlement for direct sales to consumers after the Elon Musk-led company filed a suit against the state’s governor and other officials. Michigan House lawmakers earlier this month stripped the bill of the Tesla-specific provisions before passing it on to the Senate, counteracting the settlement, as reported by the Detroit News.

Price Action: Tesla shares closed nearly 6.5% lower at $649.86 on Monday.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.