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State of Iowa Tells Tesla To Cancel Its Scheduled Test Drives

Posted by Soulskill on from the because-reasons-and-whatnot dept.

puddingebola writes: Conflict continues between state governments and Tesla. From the article: "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 earlier this month in West Des Moines. 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." While the article touches on the legal restrictions on selling cars in Iowa, it seems that Tesla was only providing test drives.

1 of 335 comments (clear)

  1. Re:The "old boys' club" by __aaltlg1547 · · Score: 5, Informative

    The State is right. Tesla is breaking the law:
    Iowa Code 322.3.1 A person shall not engage in this state in the business of
                selling at retail new motor vehicles of any make or represent or
                advertise that the person is engaged or intends to engage in such
                business in this state unless the person is authorized to do so by a
                contract in writing with the manufacturer or distributor of such make
                of new motor vehicles and unless the department has licensed the
                person as a motor vehicle dealer in this state in motor vehicles of
                such make and has issued to the person a license in writing as
                provided in this chapter.
    Iowa Code 322.3.14. A manufacturer or importer shall not directly or indirectly
                be licensed as, own an interest in, operate, or control a motor
                vehicle dealer. "

    You need to change the law first, THEN you can sell cars legally. Were I in Iowa, I wouldn't buy a Tesla. There's a risk that it may be impounded as evidence in a case against Tesla.