Electric-vehicle maker Rivian has sued Ohio’s Bureau of Motor Vehicles in federal court, seeking to overturn a state law that bars manufacturers from selling cars directly to consumers while allowing Tesla to do so. The complaint, filed 4 Aug. in the U.S. District Court for the Southern District of Ohio, asks the court to let Rivian apply for a dealership license and declare the prohibition unconstitutional. Rivian calls the 2014 statute "irrational in the extreme," arguing it reduces competition, limits consumer choice and drives up prices by forcing buyers to order vehicles from out-of-state before taking delivery at Rivian service centers inside Ohio. The company is permitted to perform repairs and deliver vehicles in the state but cannot complete sales transactions there. Tesla secured direct-sales rights in Ohio through a 2013 agreement codified by the legislation, a carve-out Rivian says unfairly favors one competitor. The measure followed lobbying by the Ohio Automobile Dealers Association, which defends franchise dealers’ decades-old role as intermediaries between automakers and buyers. Rivian can sell directly to consumers in 25 states and Washington, D.C., and has previously prevailed in a similar dispute in Illinois. The Ohio case adds to a growing list of legal challenges—also involving Lucid Motors and Tesla—aimed at rolling back state franchise laws that limit direct sales by emerging EV manufacturers.