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Tesla Model 3 used by Police Department reveals massive financial savings
The Westport Police Department in Connecticut has released a new financial analysis that is showing massive savings, as anticipated, after the purchase of a Tesla Model 3 that would be used as a police cruiser. The Police Department reports that it has already helped recoup the purchase price premium and helped save money for the department in its first full year of operation.
After purchasing a Tesla Model 3 in December 2019 and putting it to work in February 2020, Westport PD spokespeople said that the all-electric sedan has already exceeded expectations for performance, cost savings, and environmental benefits. After sparring with the idea of purchasing another Ford Explorer for the police fleet, cost-effectiveness became the big question. There is a $15,300 difference between the Model 3 and the Explorer, but Westport’s PD has no regrets about its decision.
Tesla Model 3 becomes first squad car for Connecticut police department
“The purchase price differential was recouped in the first year due to reduced customization and lower operating costs. All of these have been analyzed in detail,” the department said.
The EV Club of Connecticut completed a vehicle cost comparison analysis after the first year of ownership shows that, despite the additional initial cost of the Model 3, reduced maintenance costs, along with decreased customization needs for the Model 3, gave the department a savings of around $17,600. The ongoing cost of the Model 3 is comparatively less than that of the Ford Explorer based on routine maintenance and fuel costs.
Credit: EV Club of CT
Additionally, the Police Department is also considering purchasing another Model 3 to add to its fleet. After four years of ownership of the “Pilot” Tesla that the department purchased in 2019, the total cost is projected to be $79,400. If another Model 3 is added to the fleet, after four years, it will cost $95,800. The Ford Explorer would be much more expensive, sitting at $120,200.
The Westport Police Department outlined several conclusions after the analysis.
- After four years the Tesla will have saved enough money to buy another Tesla.
- Each EV avoids emission of over 23 tons of CO2 per year and saves $8763 in environmental and health costs.
- There is a $12,582 savings in fuel alone after four years from using electricity to power the vehicle.
- Reduced maintenance. Regenerative braking means that the engine slows the car and recaptures some of the kinetic energy, replenishing the battery and reducing wear on the friction brakes. It is one example of how an EV saves on maintenance. Other examples are no oil changes, spark plugs, transmission, alternator, water pump, or catalytic converter.
- Even during the winter months, the vehicle was able to consistently run two consecutive patrol shifts without needing to be recharged, and there were no operational issues related to charging and battery use.
Credit: EV Club of CT
The Town of Westport audited the financial analysis.
Chief Foti Koskinas, who was a vocal supporter of bringing the vehicle into the fleet, said, “Tesla has been a great partner, including re-coding where necessary. We would not have been able to do things like wire the electronics into the large battery or access the car’s computer without their help.”
Along with the massive cost benefits, the department says the instant torque and performance are key factors in overtaking a suspect’s moving vehicle. This increases the safety of the driver, officer, and other vehicles, as a traffic stop can be completed thanks to the lightning-quick agility of the Model 3 quickly.
Despite the large cost initially, the residents of Westport have been extremely positive. “Feedback from the public has been overwhelmingly positive, Charles Sampson of the Westport PD said. “We’ve have been contacted by at least 50 other police departments – from all over the world – with questions about our experience. I know many of them have gone on to purchase Teslas for their fleets.”
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Elon Musk
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.
Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.
The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.
For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.
Elon Musk
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.
Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”
Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.
Credit: TESLA
Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.
As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.
Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.
The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.
As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.
Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
- Revenues – $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow – $1.444 billion
- Profit – $4.72 billion
Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.
On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.
Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.
You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
