Tesla (TSLA) Banned from Allowing Test Drives in Iowa

Iowa is the latest in states that are banning test drives for Tesla (Nasdaq: TSLA).

The Des Moines Register reported Thursday that the Iowa Department of Transportation has put the kibosh on Tesla offering test drives in the state. The reasons behind the move were that Tesla isn't licensed as an auto dealer in Iowa and state law prohibits carmakers from selling directly to the public.

Other states that ban Tesla from offering test drives or direct sales include Arizona, New Jersey, Maryland, Texas, and Virginia.

Tesla was holding a three-day event in the parking lot of a Des Moines Marriott to allow potential customers a chance to drive the Model S sedan, but the third day of the event was canceled after Tesla spoke with iDOT officials.

Shares of Tesla ended Thursday's session down 2 percent.

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