New York City Wants to Buy a Tesla Model 3 Fleet for $12.3 Million

New York City wants to purchase a Tesla Model 3 fleet, worth $12.36 million dollars. This is according to a public hearing notice shared last week on December 3, 2021 (via @SawyerMerritt).

On December 16, 2021, Citywide Administrative Services will hold a public hearing at 10am by conference call. The issue is a “proposed contract between the Department of Citywide Administrative Services of the City of New York and Tesla, Inc., located at 3500 Deer Creek Rd., Palo Alto, CA 94304, for procuring Tesla Model 3 All-Electric Sedans. The contract is in the amount of $12,360,000.00.”

Currently, an entry Model 3 costs $46,490 USD. If we assume the deal is only for entry Rear-Wheel Drive versions, that equates to 265 Model 3 vehicles, as per the $12.36 million contract.

Tesla recently entered an agreement to supply 100,000 Model 3 vehicles to rental company Hertz. Elon Musk said there would be no discount on these cars.

Tesla has an on-the-ground presence in New York City, as Revel has a Model Y taxi fleet. The first Tesla taxi debuted in the city back in December 2020.

It remains to be seen what NYC will be discussing in terms of this Model 3 deal, but it could again pave the way for larger metropolitan areas to switch to electric vehicles, particularly those from Tesla. Many cities are switching away from gas vehicles and to electric for not only environmental purposes, but also in savings from fuel and maintenance, compared to gas cars.