The U.S. State Department had been in discussions with Tesla, Elon Musk’s electric car company, to purchase armored electric vehicles. However, the deal was put on hold by the Trump administration after reports surfaced about a potential $400 million purchase. A State Department representative confirmed that Tesla, which was the only company to show interest, had been in talks for the deal back in May 2024 during President Joe Biden’s administration. While still in the planning stages, the Tesla contract was expected to be the largest federal contract of the year. This situation highlights how Musk’s companies, which rely heavily on federal funding, benefit from taxpayer money. Over the years, Musk’s companies have secured billions in government contracts, with SpaceX receiving nearly $20 billion since 2008 for space missions, and Tesla already receiving $41.9 million for providing vehicles to U.S. embassies.
The Department of State stated that no government contract has been awarded to Tesla or any other manufacturer for the production of armored electric vehicles.
In September, the Biden administration instructed the State Department to collect information from potential suppliers for the purchase of armored electric vehicles. A formal request for bids was expected to be released in May, according to State Department records from December. However, the department has now put that solicitation on hold with no plans to move forward.
After reports surfaced about plans to purchase from Tesla, the State Department updated its fiscal year 2025 contract forecast late Wednesday. The department clarified that the information should have been listed as a general “electric vehicle manufacturer,” not specifically referencing Tesla. Meanwhile, another entry still names the German automaker BMW for a different purchase.