Tesla Test Drives: DOH

For those of you wondering if the “DOH” is a Homer Simpson exclamation—or the abbreviation for Department of Humility—it’s both. And not just for me, but for Tesla, too.

Read on to learn how two Luddite politicians, one well-funded dealership heavy, two devoted public servants, an omissive sleepytown reporter, and one haplessly hardworking Tesla sales rep mix it up for your entertainment.

Recently, I’ve written at length about how some states, specifically Iowa and Michigan, are coming down hard on all-electric car manufacturer Tesla Motors. Their beef? Tesla’s direct sales model that eschews franchised dealerships.

However, I’ve argued that the real spider on the wall of legacy dealerships is Tesla’s sexy and superior electric auto tech. (You can read about how Michigan auto dealerships were responsible for the state’s recent law banning Tesla’s disruptive direct sales approach.)

As part of this coverage, I’ve solicited the officials and politicians involved in these incidences in Iowa to join me in a dialog regarding the legitimacy of the cancellation of test drives conducted by Tesla in Des Moines in September. Senator Matt McCoy and Rep. Peter Cownie haven’t responded. Nor has Bruce Anderson, president of the Iowa Automobile Dealers Association (IADA), which cried to mommy (the Iowa Department of Transportation) to spank Tesla.

However, Mark Lowe, Director of the Motor Vehicle Division of the Iowa DOT, has responded. I published my email thread with Mr. Lowe in this blog post.

My latest email exchange with Mr. Lowe has been enlightening. If you’re reading this, there’s a good chance that you’re a fan of electric vehicles and probably Tesla Motors. I count myself among your ranks. Something often grossly lacking in the religious wars of Apple vs. Google, PC vs. Mac, Xbox vs. Playstation, or Tesla vs. the lunatic Luddites in Detroit is the accuracy and completeness of reporting. There’s too many bloggers and journalists simply not telling both sides of the story.

I have cited and complained about how Iowa officials referred to Tesla’s test drives as a “sales event” (their obvious justification for the shut down and claim of illegal activity). I even said that Anderson, the IADA’s president—and the impetus of the cancellation of the test drives—“needs to get his facts straight” regarding his statement to The Des Moines Register that Tesla was engaged in selling vehicles during its test drive event. From the Register: “A spokesperson for Tesla said the company does not believe the statutes apply because the company was not selling cars, only providing test drives.”

Like most Tesla fans reading this, I assumed that dealership-funded Anderson and Iowa’s bureaucrats were incorrect. And that the Tesla spokesperson—and the newspaper reporting the story, The Des Moines Register—were right.

But I couldn’t have been more wrong.

Mr. Lowe, in an Oct. 21 email to me, stated “the Tesla representative at the event indicated she had sold at least two vehicles and demonstrated how customers could order a vehicle by making a purchase order and making a down payment online using her tablet. I understand Mr. Steier [the DOT’s Director of the Bureau of Investigation & Identity Protection] discussed this with Tesla’s counsel, and they agreed this was beyond what Iowa law permitted but asked permission to finish the event.” Mr. Lowe explained that this information was provided by Mr. Steier to The Des Moines Register.

Somewhat confused, I pointed out to Mr. Lowe that The Des Moines Register had not reported Mr. Steier’s statements regarding the Tesla rep’s admission of sales or that Tesla’s legal counsel “agreed this was beyond what Iowa law permitted.” Mr. Lowe responded: “Paul Steier shared those details with The Des Moines Register, but for some reason they did not include them in their coverage.”

This is quite a dramatic twist to this story. (Regarding Mr. Lowe’s integrity: He has been nothing but mature and professional during our lengthy dialog.) I was as shocked as you, dear reader. I love Tesla, believe in all-electric personal transportation for a plethora of reasons, and openly decry archaic laws—like those in Iowa and Michigan that prevent progressive 21st century companies from displaying, demonstrating, or selling their vehicles. However, Mr. Steier and Mr. Lowe are guilt-free. They were simply enforcing existing laws.

Tesla Motors is a publicly traded corporation with a nearly $30 billion market cap. I’m sure it employs a relatively large staff of lawyers to help it navigate the intense regulatory waters of the automotive industry. Were these high-priced attorneys not consulted prior to the Iowa test drives?

Had the Tesla rep—who, according to Mr. Steier and Mr. Lowe, admitted she had sold two vehicles—not been made aware that this was illegal in the state of Iowa and was probably going to get Tesla in hot water? After all, this has been a trending topic involving Tesla for some time. Was the Des Moines newspaper reporter feigning ignorance through his omission of these facts, or just overworked and a bit sloppy that week? (Come on, Name Changed to Protect Your Sorry Ass, you can do better.)

Was this all just the result of poor internal communications at Tesla and crappy or biased reporting on the part of The Des Moines Register?

It’s sad that it took a multi-day dialog with Mr. Lowe to obtain these facts. Why, exactly, weren’t they reported by The Des Moines Register? With such great ammo, why didn’t the IADA and Bruce Anderson speak up for themselves? And

why did Tesla allow an employee to break the law in the pursuit of a couple of car sales?

My thanks to Mr. Lowe for being professional and patient enough to clarify the

situation.

Curt Robbins

Curt Robbins is author of the following books from Amazon Kindle:

Home Theater for the Internet Age ($9.95) Understanding Home Theater ($4.99) Understanding Personal Data Security ($4.99) Understanding Cutting the Cord ($4.99) Understanding Digital Music ($4.99)

Watch for future titles regarding home automation, streaming media, and electric and self-driving cars. You can follow him on Twitter at @CurtRobbins, on Instagram at curt_robbins, or read his Flipboard magazine Middle Class Tech.