State Department Revokes Plan to Purchase $400 Million in Armored Tesla Vehicles
Last year, the State Department aimed to collect information on potential suppliers of electric vehicles.
On Thursday, the U.S. Department of State announced that it has paused its plans to procure armored Tesla vehicles. In September 2024, the federal government instructed the department to seek information from possible suppliers regarding electric vehicle purchases.
A spokesperson for the State Department confirmed to The Associated Press (AP) that Tesla was the only company that showed interest as of May 2024.
According to the spokesperson, neither Tesla nor any other manufacturer has received a government contract for the production of armored electric vehicles for the Department of State.
The release of a formal request for bids was scheduled for May 2024, based on data from the State Department published in December 2024. However, this solicitation is now on hold, with no plans to proceed, as stated by the State Department.
Tesla’s CEO, Elon Musk, is at the forefront of the Trump administration’s initiatives to restructure the federal government and eliminate unnecessary spending, serving as head of the Department of Government Efficiency (DOGE).
The prospective acquisition of vehicles from Tesla was mentioned in the department’s procurement forecast for 2025, which outlines potential purchasing opportunities.
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This list was initially published in December 2024, shortly after President Donald Trump won the election but before his inauguration.
The State Department indicated that the potential acquisition of “Armored Tesla (Production Units)” was planned at an estimated cost of $400 million. However, the document did not specify which model of Tesla was under consideration at that time.
Following reports of a potential agreement, a revised version of the document was shared online, which excluded any references to Tesla.
The State Department clarified to the AP that the initial entry was an error and should have been categorized as a generic “electric vehicle manufacturer.”
There is at least one other entry in the procurement forecast for a separate purchase that names another company: German automaker BMW.
The Epoch Times has reached out to both the State Department and Tesla for additional comments.
Musk has defended his role as head of DOGE amidst inquiries regarding potential conflicts of interest.
His companies secure hundreds of millions of dollars annually through contracts, with SpaceX, for instance, obtaining nearly $20 billion in federal funding since 2008 for transporting astronauts and satellites into orbit.
Tesla has also received $41.9 million from the U.S. government, including payments for vehicles provided to various U.S. embassies.
“Transparency is what builds trust,” said the businessman.
Trump supported Musk’s statements, emphasizing that the government would not permit Musk to “engage in that segment or explore that area if there were issues regarding transparency or conflicts of interest.”
The Associated Press contributed to this report.
