An Illinois lawmaker is proposing legislation that could restrict how consumers purchase electric vehicles (EVs) in the state. State Sen. Ram Villivallam’s Senate Bill 1939 would prevent future independent EV manufacturers from selling cars directly to customers, requiring them to use auto dealer networks instead.
The bill’s proponent, Villivallam, argues that it will continue to support auto dealers in their work. “We want to continue to support our auto dealers to do the work that they’re doing and do it even more, especially at a time where Tesla is doing terrible,” Villivallam said. Tesla and Rivian, which currently sell their vehicles directly to customers, would be exempt from the legislation.
Critics, however, warn that the bill could drive consumers out of state to purchase EVs, resulting in lost tax revenue and jobs in Illinois’ auto industry. This comes as Illinois is striving to increase the number of EVs on its roads.
The proposal was introduced on the same day that state officials announced Canadian electric bus manufacturer Damera Corporation would be building a plant in the Peoria area. The company plans to invest over $31.5 million and create 90 full-time jobs with the help of a Reimagining Energy and Vehicles agreement.
This development contrasts with the fate of another electric bus company, Lion Electric, which set up shop near Joliet but declared bankruptcy after less than two years despite receiving $50 million in state tax incentives. Illinois Governor J.B. Pritzker has set ambitious goals for the state’s EV adoption, aiming for 1 million electric vehicles on the road by 2030 and net-zero greenhouse gas emissions by 2050.
