Tesla Motors Inc Can’t Test-Drive Cars In Iowa Anymore

Started by 7H3, Sep 27, 2014, 08:16 PM

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7H3

http://www.bidnessetc.com/26338-tesla-motors-inc-cant-testdrive-cars-in-iowa-anymore/

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Another headache for Tesla Motors Inc (TSLA) has emerged because of CEO Elon Musk's consistent refusal to sell electric vehicles through the traditional dealership network. The Iowa Department of Transportation cut short a test drive event organized by the electric vehicle manufacturer, which was designed to give a taste of the luxury Model S to Iowans.

According to the Des Moines Register, the action was taken by Iowan authorities because the state laws do not allow any auto manufacturer to sell cars directly to the public. In order to protect the business interests of dealerships, all auto sales have to be routed through the dealership network. Tesla strictly believes in the direct-sales model because selling its electric vehicles through the dealership network will put it at a significant disadvantage. According to Mr. Musk, dealerships have an inherent conflict of interest in promoting electric vehicles. This is due to the fact that electric cars represent only a tiny fraction of all automobile sales, and promoting them will put the gasoline vehicle business of dealerships in danger.


guess iowa has to much interest in ethanol...
"It's hip to be square." - Eurogamer<br />"Shut up its art!" -Legend