The bill, which was sponsored by Democratic Representative Dylan Roberts and Republican Senator John Cooke, passed through the state legislature with bipartisan support and was signed into law by Governor Jared Polis last week. Colorado is the fifth state to allow Tesla to sell its cars directly to consumers, and the first state to allow Rivian to do the same.

Tesla and Rivian have praised the Colorado legislature for passing the bill, and both companies say that they will begin opening direct-sales locations in the state as soon as possible.

Colorado's move to allow direct sales of Tesla and Rivian cars is good news for both companies, and it could be a sign of things to come in other states. Tesla has been pushing for direct sales in several states where it is currently prohibited, and Rivian is likely to follow suit. 

If Tesla and Rivian are successful in selling their cars directly to consumers, it could upend the traditional auto dealership model and give the two companies a major competitive advantage.