Iowa Department of Transportation Deems Tesla Test Drives Illegal
As the Des Moines Register reported awhile back:
“Iowa joined a growing list of states tussling with Tesla Motors’ business model when it told the company to cut short three days of test drives…”
“The Iowa Department of Transportation said the test drives were illegal for two reasons: Tesla isn’t licensed as an auto dealer in Iowa and state law prohibits carmakers from selling directly to the public.”
We’re not going to go into detail in regards to the Iowa case (full details, including some foolish acts by the Iowa Automobile Dealers Association, in Des Moines Register article here), but rather we’d like to point out that this is far from the first time that Tesla encountered a test-drive issue similar to this.
We’ve heard stories of cancelled test drives from residents of several states. In fact, in Michigan (where I reside) there was a scheduled test-drive event for the Model S that I signed up for, but it was called off the day before it was to occur due to…yep, you guessed it, some area automotive dealers who cried foul.
It seems that the automotive dealers association simply won’t stop whining over the Tesla direct sales model. Don’t expect this to change anytime soon.
Tesla is at odds with the dealers. This battle will likely last until Tesla either accepts the dealership model or wins in every state in which Tesla sales are deemed unlawful.
Source: Des Moines Register