Benzingaยท2025-03-10 23:07Core Insights - Tesla Inc has faced a setback with a $5 million contract for electric vehicles with Baltimore being paused, allowing a rival to take over the deal [1][2][3] - The city of Baltimore has decided to explore options with other automakers, specifically General Motors and Ford, indicating a shift in preference away from Tesla [3][4] - The political landscape, including Tesla CEO Elon Musk's support for Donald Trump, may have influenced the city's decision, although it is not confirmed as a political move [4][6][7] Summary by Sections Contract Details - The $5 million contract with Baltimore was paused in September, with no Tesla units ordered or included in the city's fleet [2][3] - The contract was intended to run until 2027, but the city is now considering Ford's Mustang Mach-E, which was the vehicle Tesla was set to replace [3] Political Context - The political dynamics in Maryland, where Kamala Harris won by a significant margin, may play a role in the city's decision to pivot away from Tesla [5][6] - The timing of the contract pause coincided with Musk's increased political activity supporting Trump, raising questions about potential political motivations behind the city's choice [6][7] Market Impact - Following the news, Tesla's stock dropped 15.43% to $222.15, reflecting a year-to-date decline of 41.4% in 2025 and a 25% increase over the last year [7] - Tesla's stock is currently trading below its value at the time of Trump's election victory, indicating a potential loss of investor confidence [8]