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State Department Halts $400M Tesla Armored Vehicle Contract Following Scrutiny

The proposed deal, initiated under the Biden administration, has been put on hold as concerns over conflicts of interest and procurement processes arise.

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Elon Musk, chief executive officer of Tesla Inc., walks to the Eisenhower Executive Office Building (EEOB) near the White House in Washington, DC, US, on Thursday, Feb. 13, 2025.
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Overview

  • The U.S. State Department's procurement forecast initially included a $400 million contract for armored Tesla vehicles, later revised to 'armored electric vehicles.'
  • The solicitation for the contract, which began under the Biden administration, is now on hold with no current plans to issue it, according to State Department officials.
  • Elon Musk, serving in the Trump administration while maintaining leadership roles in Tesla and other companies, has faced criticism over potential conflicts of interest.
  • Tesla CEO Elon Musk denied knowledge of the proposed contract and stated that he was unaware of any plans for Tesla to receive $400 million.
  • The controversy has drawn bipartisan scrutiny, with some lawmakers questioning the practicality of armored electric vehicles for government use and others raising concerns about transparency in procurement processes.