The Illinois Automobile Dealers Association (IADA) has filed an appeal challenging a court ruling made last month, allowing EV automakers like Rivian and Lucid to continue selling their vehicles directly to consumers, bypassing the traditional dealer sales model.

The battle between traditional dealers and the direct sales model is an ongoing issue that began with Tesla several years ago. To this day, many US states still do not allow Tesla to sell directly to consumers as a result of intense dealer lobbying. The recent ruling in Illinois was a significant step forward for those EV carmakers, but the state's influential dealer association intends to fight back.

The appeal was filed last Friday, per Automotive News, following the December 19 ruling from Associate Judge David Atkins. The judge ruled in favor of direct sales as he agreed with the Illinois Secretary of State's decision to issue dealer licenses to the EV startups two years ago.

"The Illinois legislature has had ample opportunity and has at least once expressly considered explicitly prohibiting manufacturers of automobiles from being licensed as dealers thereof," reads Atkins' verdict. "It has declined to do so, and it is thus reasonable to conclude that it had no such intent."

The dealers' association, however, argues that the state is giving special treatment to EV carmakers while not considering traditional dealers' needs. They also claim a direct sales model essentially creates a monopoly as consumers cannot shop around to find the best price.

The dealers' association represents 700 dealers in the state and cited the Illinois Vehicle Code and Illinois Motor Vehicle Franchise Act in its argument. In other words, public vehicle sales have to be made via licensed and independently owned franchised dealers.

"You cannot be a manufacturer and a dealer," said the association's executive director, Joe McMahon. "That's in the law, so we think it's pretty clear."

What happens in the courts remains up the in the air, but until then, it remains possible for consumers to purchase vehicles such as the Rivian R1T and Lucid Air directly from those companies.

Elsewhere in the US, Lucid is continuing its legal fight against the state of Texas over its right to sell directly to consumers. The company previously lost its legal battle in Louisiana. Rivian, meanwhile, won its case in Colorado a couple of years ago. These EV startups have upended the traditional way of buying new vehicles, and those powerful state dealer associations are looking more and more likely to ultimately be on the losing side.