NYPD Considers Ordering 250 Tesla Model 3 Sedans for $12.6 Million, Documents Reveal

• Agency to discuss purchase contract at city hearing Thursday
• EVs are gaining favor with local and federal governments

Photographer: Angus Mordant/Bloomberg

The New York City Police Department is weighing the purchase of as many as 250 fully electric Model 3 sedans from Tesla Inc., a move that would put the high-performance vehicles into the hands of the nation’s largest police force.

The agency would pay $51,940 each for the vehicles as part of a citywide push to transition to an all-electric fleet, according to the draft of the procurement contract viewed by Bloomberg News at city offices Wednesday. While the city hasn’t yet committed to the purchases, the contract, to be discussed during a hearing Thursday morning, could be valued at about $12.4 million.

The NYPD is the largest police department in the U.S., with almost 36,000 uniformed officers and a fleet of 9,000 vehicles.With local and federal governments increasingly electrifying their fleets to meet climate goals, the cars are also expected to have lower maintenance costs and fuel savings compared to models with traditional internal combustion engines.

A deal between the NYPD and Tesla would underscore the shift in vehicle sales to law enforcement, a market once dominated by Ford Motor Co.The police department in Fremont, California, has a Tesla Model S and a Model Y in its fleet as part of a pilot program.

The Fremont agency said in a November 2020 report that it was pleased with the Model S performance, which “met or exceeded expectations, often demonstrating superior performance when compared to gas-powered police vehicles.”

A foothold with police departments would extend Tesla’s growing fleet business. Rental car company Hertz announced plans to buy 100,000 Tesla cars last month, pushing Tesla’s valuation above $1 trillion. Its current market cap is $980 million.