Tesla just opened the door to 50,000 government buyers
Tesla signed a deal that lets more than 50,000 public agencies — including police departments and school districts — buy its vehicles without the usual slow bidding process, making it much easier to compete in a market long dominated by Ford and General Motors. The public sector currently represents less than 1% of Tesla’s sales.
The move doesn’t guarantee orders, but it removes a major barrier at a time when Tesla is looking for new demand to bolster its main source of revenues. Tesla’s Q1 deliveries fell short of analyst expectations and annual sales have declined for two years in a row. The public sector also represents a large pool of buyers who are outside Elon Musk’s other companies.
Tesla reports earnings after the bell today.
The move doesn’t guarantee orders, but it removes a major barrier at a time when Tesla is looking for new demand to bolster its main source of revenues. Tesla’s Q1 deliveries fell short of analyst expectations and annual sales have declined for two years in a row. The public sector also represents a large pool of buyers who are outside Elon Musk’s other companies.
Tesla reports earnings after the bell today.
