Iowa Bans Test Driving the Tesla Model S

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2014 Tesla Model S (Credit: Tesla Motors)

If you live in the great state of Iowa, you will have to travel elsewhere to test out the Tesla Model S. Thanks to a move by the Iowa Department of Transportation, an old law that regulates the sale of cars in the Hawkeye State is being leveraged to protect the public from the horrors of test driving an electric car. After all, that’s far worse than the dangers posed by murderers, rapists and back room deals with politicians.

» Related: Tesla Adds Ludicrous Mode For Model X

Despite being ridiculous, this really shouldn’t be much of a surprise. Quite a few other states have shut Tesla out in the cold, using their own arcane laws to block sales of the company’s cars in the state. The big issue is that Tesla hasn’t set up a network of car dealers. And since we all know how much everyone loves going to car dealers, this certainly is setting up a huge service to the public. The most awkward was when Arizona pushed Tesla out of the state altogether, only to turn around and try to win a bid for the automaker’s Gigafactory.

The result of this vigilant action by the Iowa Department of Transportation, thanks to a wonderfully helpful tip from the Iowa Automobile Dealers Association, is that a three-day test drive event for the Model S in West Des Moines was cancelled since it was deemed “illegal.”

Some question the sanity of Tesla Motors, wondering why it doesn’t just set up its own dealer network like every other automaker in the United States. Tesla doesn’t do things the normal way, but clearly there are some disadvantages to conducting business in a purely direct sales model, especially when it comes to selling automobiles. While the automaker doesn’t have to carry a stock and it increases profit margins, the direct sales model has limited where the Model S can be sold and has turned off some consumers who say they can’t get a simple question answered about the car. Perhaps as its movements are blocked more, Tesla will reconsider its position.

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Tom

What ever happened to the days when you went to the dealership and ordered the car you wanted with the options that you wanted and then, God forbid, you waited for it to arrive. Instead of having a Mega Mall full of inventory with the lights burning 24/7, Tesla wants to have a small showroom to show case their car, staffed by smart people who actually know something about their product. What a concept
Steven Symes

They are out there, if you look. Here’s one straight from Tesla Motors’ website: http://www.teslamotors.com/forum/forums/complaints-ordering-and-customer-service

The man, who lives in Hong Kong, said that he was left hanging for 8 months on his reservation for a car, unable to get a response from the company. There are more, but only one is required to prove that such a statement is indeed not false.

Before you go off on a media conspiracy against Tesla, know that I actually like the company. But there are problems with the direct sales structure, as is illustrated every time Tesla is blocked from doing anything in a state. There are advantages as well — it’s a mixed bag.
- RickardOGrady
  
  Far less problems than with other car manufacturers setting up a dealer structure that’s designed intentionally to screw over the buyer…
  - kmart10
    
    As a car dealer, that’s not what we do… it’s the perception because we give the consumer an opportunity to “haggle” an 8% or less margin which was a mistake from the beginning… you go to a retail store and buy anything in there to not feel screwed over? Well I’ll tell you that those batteries you just paid for had a minimum of 300% markup on them. Or almost any electronics, huge markup! Or even the food we buy! It’s just pure economics! This industry is so transparent these days with the amount of information you hold in your hand that anyone who has tried to ouch as a car in the last 5 to 10 years can tell you it is becoming 100% customer satisfaction based… we are going to make a small profit to keep the lights on and give you, the consumer a place to shop, but our main focus these days is to build a relationship with you so you come back for service, parts, warranty work, and to get your next car from us after you grow tired of your current car… you can contact and be contacted by 15 different dealerships in 5 minutes from your smart phone! You should try it some time! It’s pretty amazing
RickardOGrady

“Perhaps as its movements are blocked more, Tesla will reconsider its position.”

Actually, I hope Tesla takes his inventions, his cars, and his money overseas where, while there are still government-private business conflicts of interest, at least his money and his creativity will be welcome. Let the nation scream at their lawmakers to fix this sh-t.