Georgia Supreme Court remands portion of Lucid direct sale lawsuit
The Supreme Court of Georgia upheld the constitutionality of the state’s direct sales ban under the Motor Vehicle Franchise Practices Act. However, it remanded part of a lawsuit seeking the direct sale of vehicles to customers.
Lucid argued in a lawsuit against the state that the direct sales prohibition violates several provisions of the Georgia Constitution and sought a permanent injunction prohibiting the state from enforcing the prohibition against it.
The Supreme Court ruling notes that a 2015 amendment to the act redefined “new motor vehicle” more broadly as any motor vehicle without an issued title.
“[H]owever, the plain language of OCGA § 10-1-664.1(c) applied differently, prohibiting manufacturers from selling new motor vehicles directly to consumers and requiring that manufacturers instead sell new motor vehicles through independent franchised dealers,” the ruling states.
Lucid alleged that the direct sales prohibition “arbitrarily distinguishes between classes that are similarly situated in all material respects,” violating Paragraph IV(a) of the Georgia Constitution, because it “permits a limited class of electric vehicle manufacturers who were operating dealerships in the state as of Jan. 1, 2015, to sell their vehicles directly to consumers in Georgia without using a franchised dealer as an intermediary.” This is in reference to Georgia permitting Tesla to sell directly to consumers.
Lucid also argued that the prohibition violates Paragraph IV(c) “because it is a special law relating to the rights or status of private persons.”
The Supreme Court sided with the trial court that Lucid lacks standing on the first argument. However, it ruled that the trial court failed to adequately consider whether Lucid had stated a Paragraph IV claim challenging the 2015 amendment.
The Supreme Court ruled that Lucid has constitutional standing to challenge the amendment’s enforcement and remanded that part of the case.
Lucid isn’t the only EV automaker fighting for direct sale privileges.
A committee called the Washington Coalition for Consumer Choice and Innovation is backing a ballot measure to allow direct-to-consumer EV sales in the state, for which Rivian pledged nearly $25 million to support.
Tesla has exclusive access to sell EVs directly to consumers in Washington State. Legislation to allow other automakers, like Rivian and Lucid, to do so has previously failed.
The Washington State Standard previously reported the coalition said in a statement that it “believes that all Washington drivers should have the option to test drive and purchase the vehicle of their choice.”
“We are currently pursuing a November 2026 ballot measure to make these choices available to Washington consumers,” the statement says, according to the article. “We believe the majority of voters will agree with us that Washington’s outdated car sales laws should be updated.”
On Tuesday, Lucid announced it had named a new CEO, Silvio Napoli.
Interim Chief Executive Officer Marc Winterhoff will serve as Lucid’s chief operating officer (COO) upon Napoli assuming the CEO role.
According to a Lucid press release, Napoli brings decades of global industrial leadership experience, most recently serving as chairman and CEO of Schindler Group, an industrial technology company.
During his tenure with Schindler Group, Napoli led large‑scale global operations across complex markets, with a strong track record in manufacturing excellence, cost discipline, capital allocation, and building and leading resilient, high‑performing organizations, the release states.
It adds that he also led the vertical transportation industry’s evolution toward a more technology‑enabled, service‑oriented business model, strengthening recurring revenue and long‑term value creation.
Also on Tuesday, Lucid reported that Uber has contributed an additional $200 million investment, bringing its total stake to $500 million.
Lucid announced a significant expansion of its partnership with Uber, further supported by an additional long-term investment of $550 million from Ayar Third Investment Co., an affiliate of the Public Investment Fund (PIF).
As part of the agreement, Uber will increase its purchase commitment to at least 35,000 Lucid vehicles designed exclusively for use as part of Uber’s future global robotaxi service, according to a Lucid press release.
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