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VOL. 38 | NO. 38 | Friday, September 19, 2014

Iowa bars Tesla Motors from offering test drives

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DES MOINES, Iowa (AP) — The Iowa Transportation Department has told Tesla Motors to stop offering test drives.

The Des Moines Register reports (http://dmreg.co/1sZhA2w ) that the department said the test drives were illegal because Tesla isn't a licensed auto dealer in Iowa and because Iowa law bars carmakers from retail sales.

A Tesla spokeswoman told the newspaper that the company doesn't think the statutes apply because the company was offering only three-day test drives, not actually selling cars.

Tesla doesn't sell its electric cars through franchise dealerships. People can buy the Model S online or at one of a handful of Tesla stores around the country.

Tesla is based in Palo Alto, California.

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