After Outcry, State Department Drops Plans To Buy $400 Million Of Tesla Armored Electric Vehicles

The U.S. Department of State had been in discussions with Tesla, Elon Musk’s electric vehicle company, regarding a potential purchase of armored electric vehicles. The proposed deal, valued at approximately $400 million, was expected to be the largest federal contract of the year. The contract originated when the Biden administration sought to solicit private companies to develop electric armored vehicles, with Tesla being the only company to respond at the time. The deal was initially set to be finalized by September 2025.

However, the plan was ultimately abandoned after a government document outlining purchases for 2025 was released and gained negative public attention. The revelation sparked widespread scrutiny, leading to the contract’s cancellation.

In response to the backlash, government records were altered to replace Tesla’s name with the more generic term “Armored Electric Vehicles.” On his social media platform X, Musk wrote, “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”

Musk’s companies amass hundreds of millions of dollars each year in government contracts. SpaceX has received about $20 billion since 2008 for its space exploration initiatives, and Tesla has received about $41.9 million in government funds. 

Musk’s increasing involvement in government affairs has raised concerns about potential conflicts of interest. His close relationship with President Donald Trump has drawn scrutiny, especially after Musk was appointed to lead the newly created Department of Government Efficiency (DOGE), which has led to extensive debate over Musk’s influence in government decision-making.