FORT LAUDERDALE, Fla. – The State Department was in discussions with Elon Musk’s Tesla company regarding the potential purchase of armored electric vehicles, but plans have been halted by the Trump administration following reports of a potential $400 million deal. A State Department spokesperson revealed that Tesla, owned by Musk, who serves as an influential advisor to President Donald Trump, was the sole company to show interest back in May 2024 when Joe Biden was in office.
The planned contract with Tesla, projected to be the largest of the year, highlighted Musk’s financial ties to taxpayer funds before being put on hold. Musk’s companies, including SpaceX, have accumulated substantial government contracts over the years. For instance, SpaceX has received nearly $20 billion in federal funds since 2008 for space travel endeavors, while Tesla has already been awarded $41.9 million by the U.S. government for providing vehicles to certain embassies.
Despite the discussions with Tesla, no official government contract had been awarded to the company or any other manufacturer for the production of armored electric vehicles for the State Department. The Biden administration had directed the State Department to source information from potential suppliers for the vehicle purchase in September, with plans to release an official bid request in May, according to State Department data from December. Nevertheless, the solicitation has been placed on hold with no foreseeable issuance date, as per the State Department’s latest statement.
Following the revelations concerning Tesla, the State Department made key adjustments to its anticipated contracts forecast for fiscal year 2025, late Wednesday. Initially listed under the specific manufacturer, Tesla, the contract was later updated to a generic placeholder term, “electric vehicle manufacturer.” Conversely, another entry featuring German car manufacturer BMW for a different purchase remained unaltered in the forecast.