Tesla secured a cooperative purchasing deal with Sourcewell to help more than 50,000 government groups and schools get cars. This contract is labeled 081325-TES and stays active through November 2029. It lets agencies like police departments or state offices buy the Model 3, Model Y, and Cybertruck. They can buy charging equipment under the same terms. Since this agreement covers both the vehicles and the chargers, fleet leaders can plan their whole transition at once. And they can buy things over several years to fit their budgets.
How Sourcewell simplifies the process
Sourcewell is a government unit in Minnesota that handles bidding for its members. When an agency wants a new fleet, they use these contracts instead of running their own bid.
This process saves a lot of time. It usually takes 12 to 18 months to buy a fleet, but this path is faster. And the rules stay in place. These contracts meet legal bidding standards so the agencies stay compliant without the extra work.
Tesla and the group UP.FIT checked the cost to run a Model Y for five years. They looked at 100,000 miles of driving and found the cost is about $19,500. A Cybertruck costs roughly $24,000 to run for that same time. But a Ford police suv costs $84,000 for fuel and service.
Since the Bargersville Police Department in Indiana switched to Teslas in 2019, they reported saving $80,000 a year. These savings happen even if the sticker price of the car is high. Now more leaders look at the total cost over a few years.
This deal follows a trend where groups like Blink Charging and The Mobility House set up similar buying paths. Now managers face pressure to cut their budgets and hit green goals. Since this contract removes the old hurdles, Tesla expects to see more cars on campus or in city fleets. The company wants to grow its footprint in these areas before the deal ends in 2029.
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