Colorado’s consumer-protection law only allows that dealer franchises sell cars in the state. Rivian is now celebrating the loophole that Tesla has previously found to sell direct-to-consumer EV’s.

The startup could begin to conduct direct-to-consumer sales in the state, even without a dealer franchise. Ford and Volkswagen could have sold direct-to-consumer EV’s because these companies have their local business in Colorado.

“A good compromise was reached, which brought the Colorado Auto Dealers to a neutral position,” said Mike Feeley, a CADA lobbyist and an attorney for Brownstein Hyatt Farber Schreck. “They are ready for the competition, they are ready to move this issue out into the marketplace as opposed to the legislature, and they look forward to competing vigorously in the marketplace as this market and industry evolve.”

Even though James Chen, Rivian’s Vice President of Public Policy, says the electric startup will open a showroom in the state, where the potential consumers can experience what its like to be in one of the electric vehicles.

“It absolutely means it clears the pathway for us,” Chen declares. “It’s a great example of how a number of different stakeholders with various interests are looking at this as an opportunity to serve Colorado consumers. Rivian very much wants to provide [a] seamless experience for Coloradans.”