Baltimore Shifts Focus from Tesla to Ford for EV Fleet

Tesla Inc (NASDAQ: TSLA) has secured numerous contracts with various cities for electric vehicles to support police and government services over the years. However, recent developments in Baltimore, Maryland, indicate a significant shift in the city’s approach to its electric vehicle needs.

What Happened: In September 2023, Baltimore announced a $5 million contract with Tesla for a fleet of electric vehicles would be paused, allowing competing manufacturers to step in. Mayor Brandon Scott confirmed that the city is choosing to "go in a different direction" regarding its EV plans.

City spokesperson John Riggin stated that no Tesla vehicles had been ordered and confirmed that Tesla was not part of the current vehicle fleet. He highlighted that the $5 million figure is the maximum budget for the contract, not a commitment to spend that amount on Tesla. As a result, the city is exploring options with other manufacturers, including General Motors Co and Ford Motor Co.

In light of these announcements, City Comptroller Bill Henry mentioned to the Baltimore Sun that Baltimore has decided to return to purchasing the Ford Mustang Mach-E, a model that had originally been replaced by the Tesla deal, which was set to go into effect in July 2024.

Why It Matters: Although the Tesla contract has not been officially canceled, the city's shift back to Ford could signify underlying factors affecting decision-making. The choice to pivot from Tesla to Ford may have implications, especially considering Elon Musk’s political affiliations and public endorsements for Donald Trump in the upcoming 2024 elections.

Maryland showed strong support for Kamala Harris in the last election, with Harris receiving 62.6% of the votes compared to Trump’s 34.1%. Baltimore's overwhelming support for Harris, with 195,109 votes cast in her favor against Trump's 27,984 votes, suggests that political sentiment may also influence the city's decision on vehicle procurement.

The timing of the paused contract in September came before Trump’s victory announcement, when Musk intensified his support for the president. While it is difficult to attribute Baltimore's decision solely to political considerations, the dynamics surrounding the current political climate cannot be ignored.

As Baltimore aims for carbon neutrality by 2045 and seeks to electrify its vehicle fleet by 2030, the exclusion of Tesla could indicate a preference for alternative automakers in achieving these goals.

TSLA Price Action: Following the news, Tesla's stock experienced a decrease of 15.43%, closing at $222.15. The stock has seen a 52-week trading range between $138.80 and $488.54. Year-to-date in 2025, Tesla shares have dropped 41.4% but have increased by 25% over the last year. At this point, Tesla's stock price is lower than it was at the time of Trump's election win on November 5, 2024, when shares closed at $251.44.

Further Reading:

• Concerns Raised by Teachers Union on Tesla Stock Valuation: Is Elon Musk the Culprit?

Images: Tesla, Ford

Tesla, Ford, Baltimore