Tesla to Receive Up To $5M Order from Baltimore to Supply EVs

Baltimore City officials have decided to add Tesla electric vehicles to the city’s fleet for use by city employees. According to the vote, up to $5 million will be allocated for the purpose.

The city has been purchasing electric vehicles since 2018, but until now had no Tesla vehicles. Now, in an effort to save money on fuel and reduce emissions, the Texas automaker’s vehicles have been chosen as the best option. A spokesman for the Baltimore Department of General Services (DGS) said that officials followed standard city purchasing practices in purchasing electric vehicles from Tesla.

The DGS representative, communications manager John Riggin, said in an email to the Baltimore Fish Bowl that the city issued a request for bids from companies that would like to sell electric vehicles to the city. Tesla was one of two that responded, and the purchasing bureau recommended that the Board of Estimates accept Tesla’s bid. Additionally, purchasing electric vehicles from Tesla is consistent with the Zero Emission Vehicle (ZEV) Act passed by the Baltimore City Council in 2023, which requires the purchase of electric vehicles for all light duty administrative purposes by 2030.

“The Mayor set a goal of carbon neutrality by 2045,” Riggin wrote. “To get there, we need to start the transition today. City Council Bill 21-0159 requires the purchase of EVs by 2030 for all light duty administrative vehicles.”

The $5 million purchase agreement that was approved by the Board of Estimates was an “Equipment Maintenance/Service Contract.” The period of the agreement was from June 5, 2024, to June 4, 2027. According to the materials presented to the board, the contract “has two, one-year renewal options at the sole discretion of the city. The above amount [of $5 million] is the city’s estimated requirement, however, the vendor shall supply the city’s entire requirement, be it more or less.“ This means that the city can extend the deadline for purchasing Tesla vehicles from June 4, 2027, to June 4, 2029.

Only the Model 3 and Model Y in various trim levels are available for purchase. At this point, the city has not yet placed orders. However, according to various estimates, the city can purchase about 150 Tesla vehicles.

“The number of vehicles purchased depends on the pricing and the models we choose,” explained Riggin. “This contract allows us to purchase two of the models currently offered: the Model 3 and the Model Y. For each of these models, we can choose from one of the three trim levels offered by Tesla. For example, while some agencies may not require an extended ‘Long Range’ battery, others might need it for efficient daily operations.”

“The cars will be used across all agencies, primarily as administrative vehicles, to meet the requirements set by our ZEV legislation,” wrote Riggin.

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