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.

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.