The U.S. Department of State has removed the name “Tesla” from a planned $400 million procurement of armored electric vehicles, revising an earlier document that had explicitly listed the company. The correction follows scrutiny over potential conflicts of interest involving Elon Musk, whose company was initially suggested as a beneficiary of the deal.
The revision comes amid a broader conversation about government spending and corporate influence, particularly as Musk leads an effort under Donald Trump’s administration to cut federal expenditures. The State Department now describes the planned purchase as a general order for armored electric vehicles, with no specific manufacturer named.
Correction Follows Scrutiny over Tesla’s Potential Involvement
A procurement forecast from the State Department, published in December 2024, originally stated that the government planned to spend $400 million on “armored Tesla (production units).” Given Tesla’s current lineup, the most probable candidate was the Cybertruck, which Musk has previously claimed to be bulletproof.
However, a State Department spokesperson later clarified that the document contained an error and that the entry should have read “electric vehicle manufacturer” instead of specifying Tesla. The spokesperson also stated that the procurement process was on hold, with no immediate plans to issue an official solicitation for bids.
According to the State Department, the initial request for armored electric vehicles was made during the previous Biden administration, but only one unnamed company had responded. The procurement process had been in the “planning” phase, with a projected contract award date at the end of September.
Musk Dismisses Conflict of Interest Concerns
The revelation of Tesla’s potential inclusion in the procurement list raised questions over Musk’s dual roles—as both the owner of companies benefiting from government contracts and as a key figure in Trump’s efforts to cut federal spending. SpaceX, another of Musk’s ventures, is already one of the largest government contractors providing launch services to the U.S. military and NASA.
When asked about potential conflicts of interest, Musk dismissed concerns, stating that his actions were fully transparent. “All of our actions are fully public,” Musk said, according to media reports. “If you see anything like, ‘Elon, there may be a conflict there,’ it’s not like people are going to be shy about it. They are going to say it immediately.”
The State Department’s procurement website now reflects a revised version of the forecast document, where the specific reference to Tesla has been removed. Instead, the department lists the planned purchase as “armored electric vehicles”, without naming a specific manufacturer.
The U.S. government regularly procures armored vehicles, with the same document listing other contracts, including $50 million for armored sedans and $40 million for armored BMW X5/X7 SUVs, according to the State Department’s records.
