Tesla Banned From Test-Driving And Selling Electric Cars in Iowa

Iowa has become the latest state to ban Tesla Motors from offering test drives for its electric cars.

The Hawkeye State's Department of Transportation (DOT) said it is illegal for the electric automaker to test drive these vehicles because Tesla is not a licensed auto dealer in Iowa, and automakers are not allowed to sell directly to the public under state law, according to The Des Moines Register.

Because Tesla doesn't sell its cars at traditional dealerships, customers have to buy them either at the company's stores or online.

While test-driving or selling Tesla cars through a storefront is illegal, Iowa residents are still allowed to buy them, TIME reported.

The DOT asked Tesla to end its test drives in West Des Moines after receiving a tip about the tests from Iowa's Automobile Dealers Association.

Iowa joins other states that have teamed up with dealership trade groups to make sure Tesla doesn't sell its vehicles, The Des Moines Register reported. These states include New Jersey, Maryland, Virginia, Texas and Arizona.

A Tesla spokesperson said the company doesn't plan to hold any test drive events in Iowa.

Electric car backers in Iowa argue that the move not only forces them to go to showrooms in other states to buy the vehicles, but also gets in the way of promoting greater adoption of these cars. They also argue that the Tesla Model S has the potential to completely replace cars that run on gas.

State Sen. Matt McCoy, who test drove one of Tesla's cars last year, said he would like to buy a cheaper model from the company, but added that Tesla should follow the same rules that other automakers have to follow when selling through independent dealerships.

"I have mixed feelings about it because I really like the car and I really like what the car stands for," McCoy said. "But in Iowa we tend to respect our system and the way it was set up, and I don't see any appetite to change that."

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Tesla Motors, Iowa
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