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Ankeny Today
By the People, for the People
Iowa Considers Allowing EV Makers to Sell Directly to Consumers
Bill would let out-of-state electric vehicle companies bypass dealership model
Published on Feb. 12, 2026
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Iowa lawmakers are considering a bill that would allow out-of-state electric vehicle manufacturers like Tesla and Rivian to sell their vehicles directly to consumers in the state, bypassing the traditional dealership model. The bill has cleared a Senate subcommittee and is aimed at helping these EV makers expand their sales in Iowa, which currently prohibits direct-to-consumer auto sales.
Why it matters
The proposed legislation reflects the ongoing tension between auto manufacturers and dealerships over the future of vehicle sales. Dealerships argue the current model protects consumers, while EV makers say it hampers their ability to efficiently sell and service their vehicles. This debate is playing out across the country as states grapple with how to adapt regulations to the rise of electric and direct-to-consumer auto sales.
The details
Under the bill, out-of-state EV companies would be able to obtain a state license to sell their vehicles directly to Iowa consumers, bypassing the traditional dealership network. The bill's sponsor, Senator Mike Bousselot of Ankeny, says it would benefit companies like Tesla and Rivian, which produces electric pickup trucks, SUVs and vans at a plant in Illinois. Dealerships have raised concerns about the potential impact on their businesses and consumers.
- The bill cleared a Senate subcommittee on Tuesday, February 11, 2026.
- Rivian brought some of its vehicles to the Iowa statehouse after the subcommittee vote for lawmakers to examine.
The players
Senator Mike Bousselot
The Ankeny, Iowa lawmaker who is sponsoring the bill to allow out-of-state EV makers to sell directly to consumers.
Tesla
An American electric vehicle manufacturer that currently cannot sell its vehicles directly to consumers in Iowa under existing state law.
Rivian
An electric vehicle company that produces battery-powered pickup trucks, SUVs and vans, and has a manufacturing plant in Illinois.
What they’re saying
“They just want to be able to sell their vehicles directly to consumers in Iowa without using a dealer.”
— Senator Mike Bousselot
“There are concerns from the dealers that are not just about protecting the dealership model, but also about impacts on consumers, impacts on their current business.”
— Senator Mike Bousselot
What’s next
The bill will now move forward in the Iowa legislature for further consideration and debate.
The takeaway
This proposed legislation in Iowa reflects the ongoing national debate over the future of auto sales, as states grapple with balancing the interests of traditional dealerships and the direct-to-consumer model favored by electric vehicle makers.
