Iowa isn’t allowing Tesla Motors (TSLA) to offer test drives of its vehicles.
Iowa stopped Tesla’s test drives short because the company isn’t licensed as an auto dealer in the state and it isn’t allowed to sell cars directly to customers in the state. This makes the practice of allowing test drives illegal in the state, reports The Des Moines Register.
Tesla was holding a three-day event for test drives in the West Des Moines Marriott’s paring lot. It had completed two days of test drives before it was told to stop the event. The company argues it did nothing wrong because it wasn’t selling cars at the event, The Des Moines Register notes.
Other states that have banned Tesla from selling cars directly to customers include Arizona, Maryland, New Jersey, Texas, and Virginia. Ohio and New York may join that list as both states have legislation waiting to be approved that would stop the company’s direct sales, reports Forbes.
Tesla also faced a lawsuit in Massachusetts for directly selling its car to customers. However, the judge in this case ruledin the car company’s favor and said it is allowed to directly sell to customers in the state.
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