Catering to Auto Dealers, State Governments Restrict Consumers Right to Buy Direct from Tesla
(p. 7B) Backed by dealership trade groups, several states, including Arizona, New Jersey, Maryland, Texas and Virginia, have banned or restricted Tesla from selling to the public.
The Iowa Department of Transportation asked Tesla to stop its West Des Moines test drives after being alerted to the event by the Iowa Automobile Dealers Association, said Paul Steier, director of the DOT's Bureau of Investigation and Identity Protection.
. . .
State law requires auto dealers to be licensed, and by offering test drives, Tesla was acting as a dealer, Steier said. "You can't just set up in a hotel parking lot and sell cars," said Bruce Anderson, president of the Iowa Automobile Dealers Association. "This is a regulated industry."
For the full story, see:
(Note: ellipsis added.)
(Note: the online version of the story has the date September 25, 2014, and differs in some respects from the print version. In the quotes above, I have followed the print version.)