The U.S. State Department announced on Thursday that it is postponing a proposed purchase of armored electric vehicles amid reports that the substantial $400 million order was intended for Tesla. Notably, Tesla’s CEO, Elon Musk, has been a significant advisor and supporter of former President Trump.

In a recent statement, the State Department clarified that the intention behind the procurement was not to favor Musk but rather a response to a directive from the Biden administration to gauge interest from private firms in creating armored electric vehicles. “The solicitation is currently on hold, and no plans are in place to proceed at this time,” the Department emphasized.

This ambitious procurement was initially included in the department’s 2025 acquisition forecast, designed to open competition for various projects to businesses. The forecast was made public in December, following Trump’s election victory but preceding his inauguration.

After news about the purchase surfaced late Wednesday, Tesla’s name was subsequently omitted from the document. The potential acquisition of Tesla’s vehicles raised eyebrows due to Musk’s close ties to Trump. Musk has invested over $250 million in supporting Trump’s election campaign and took on a leadership role in a cost-reduction initiative referred to as the Department of Government Efficiency, or DOGE.

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