Is the government buying ‘armored Teslas’? What we know
A Department of State contract for armored electric vehicles has removed Tesla from its documentation, and Elon Musk said he was “pretty sure” his company wasn’t involved in a deal.
Initially, a procurement forecast included Tesla as part of a $400 million vehicle contract, but the State Department later removed the company from the document after reports highlighted its inclusion.
Why It Matters
Musk, the head of the Department of Government Efficiency, has faced criticism that he may use his new role in President Donald Trump‘s administration to benefit his companies, many of which are already part of substantial government contracts. Tesla gaining a large contract from the State Department would fuel concerns among the billionaire’s critics.
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What To Know
In versions of the State Department’s procurement forecast for the 2025 fiscal year, Tesla was listed alongside BMW in a $400 million contract to supply the government with armored electric vehicles.
The department later amended the document, removing the mention of Tesla and adding “Armored Electric Vehicles” in its place. BMW remains identified as being part of the contract.
On Thursday, Musk dismissed reports of the contract, writing on X, formerly Twitter: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
A spokesperson for the State Department told Newsweek: “No government contract has been awarded to Tesla or any other vehicle manufacturer to produce armored electric vehicles for the Department of State.
“The previous Administration asked the Department of State to explore interest from private companies to produce armored electric vehicles. In response to that request last year, the Department did a public Request for Information (RFI) for an armored electric vehicle to solicit interest. The Department received interest from only one company at that time.
“As a next step in that process, an official solicitation would be sent out to vehicle manufacturers to bid. However, the solicitation is on hold and there are no current plans to issue it. It should have been a generic entry ‘electric vehicle manufacturer.'”
As head of the Department of Government Efficiency, Musk has worked closely with Secretary of State Marco Rubio. The two collaborated on the changes to the United States Agency for International Development, with Musk pushing for the agency’s closure and Rubio assuming control of it after Trump agreed to the funding freeze.
Meanwhile, Tesla has faced difficulties due to Musk’s unconventional political moves. The company’s sales in the European Union declined by 13 percent since 2024, while its share of the Swedish car market declined by 2 percent—from more than 4 percent—since January last year.
What People Are Saying
President Donald Trump told reporters on February 2: “I think Elon is doing a good job. He’s a big cost-cutter. Sometimes we won’t agree with it and we’ll not go where he wants to go. But I think he’s doing a great job.”
What Happens Next
Musk is likely to continue facing scrutiny as his political influence grows.
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