News
Ford Mustang Mach-E, Tesla Model 3 to join NYPD, NYC agencies for Gov’t use
Update: The New York City Department of Citywide Administrative Services also confirmed to Teslarati that it will purchase 250 Model 3 units for the New York City fleet. The contract for the Mustang Mach-E has been finalized. The contract for Model 3 sedans is undergoing the approval process, but has not yet been finalized. This is why the Model 3s were not included in the press release.
The New York City Department of Citywide Administrative Services (DCAS) announced today that it will order 184 Ford Mustang Mach-E vehicles and 250 Tesla Model 3s to join the City’s law enforcement and emergency response teams for regular use.
The New York City DCAS only confirmed the purchase of the Mach-E vehicles in its press release. The Model 3 purchase order was confirmed to Teslarati by the NYC DCAS. It was initially reported by DriveTeslaCanada.
“Today, the New York City Department of Citywide Administrative Services announced that it is placing an order for 184 all-electric Ford Mustang Mach-E Sport Crossover Utility Vehicles for law enforcement and emergency response use,” the DCAS wrote in a press release. “The new electric crossovers, purchased as part of the City’s largest electric vehicle (EV) purchase to date, are slated for use by the New York City Police Department (NYPD), the New York City Sheriff’s Office, the Department of Correction, the Department of Parks and Recreation, the Department of Environmental Protection, NYC Emergency Management, DCAS Police, and the Office of the Chief Medical Examiner.”
Credit: @Brian4NY | Twitter
The 184 Mustang Mach-E vehicles will replace current gas-powered cars that are still used in the City’s fleet. The City expects to take delivery of all 184 units by June 30, 2022, it said.
“Smart investments in fleet electrification will help New York City break its dependence on fossil fuels, “Dawn M Pinnick, Acting Commissioner of the NYC DCAS, said. “We are working successfully toward achieving the ambitious goal of an all-electric City vehicle fleet by 2035 by taking steps to fight the climate crisis every day.”
The NYPD utilizes over 6,200 light-duty vehicles for law enforcement, which is the largest group of vehicles in the City fleet, which consists of almost 30,000 cars. It will be the largest order of all-electric plug-in vehicles in law enforcement history and will pave the way for New York City to fully electrify its fleet by 2035.
“Law enforcement vehicles are the largest and most visible part of our City’s fleet,” Keith Kerman, Deputy Commissioner for DCAS and NYC Chief Fleet Officer, said. “This order of all-electric Mach-Es will enable our law enforcement agencies to put electric models to the full test and work out maintenance, lights and sirens, charging, and other operational issues. It is a critical step towards our goal of a fully electric fleet.”
The NYC DCAS signed the contract and registered it on December 22nd. The process for finding and commissioning these vehicles was not easy, as the DCAS sought information in June 2017 for the first time regarding the City’s process of bidding for vehicles, equipment, and fuel. The City will spend $11.5 million on initial orders, and its contract with a Minority and/or women-owned business enterprise vendor will remain intact for five years.
The NYC DCAS did not immediately respond to our request for comment.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Cybertruck
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
Elon Musk
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.