State Department Removes Tesla from Armored Vehicle Procurement Plan
Austin, Texas - The State Department has revised its procurement forecast, removing the reference to Tesla Inc. for a planned $400 million armored electric vehicle (EV) purchase following reports of the company's inclusion.
The December version of the document listed an "Armored Tesla" budget item spanning five years from 2025 onward. However, the document was updated to exclude Tesla's name after news of its initial inclusion by Drop Site News and the New York Times.
Elon Musk's role as an advisor on government spending during the Trump administration has raised concerns about potential conflicts of interest when his companies compete for contracts. Musk has stated that all activities under his Department of Government Efficiency would be transparent.
Tesla's name initially appeared alongside BMW AG, whose armored X5 and X7 SUVs the State Department is also considering. BMW remains on the list, while Tesla's removal leaves the $400 million contract designated for "armored electric vehicles."
The State Department has not awarded any contracts to Tesla or other manufacturers for armored EVs, and the solicitation process remains on hold, a spokesperson said.
Tesla representatives did not respond to a request for comment, while Musk expressed doubt on his social media platform X about Tesla receiving $400 million. Tesla shares rose 3.5% in New York by 9:34 a.m.
Conflicts of interest within Musk's business empire remain a concern, given his companies' involvement in government contracts. SpaceX, which provides rocket launches for the U.S. military and transports astronauts to the International Space Station, has secured billions in contracts.
Musk's Cybertruck, manufactured in Austin, Texas, could potentially fulfill the State Department's order. The Cybertruck has been touted for its military applications, with Musk comparing it to futuristic battle tanks.