FORT LAUDERDALE, Fla. (AP) — The State Department had initiated discussions with Tesla, led by Elon Musk, regarding the acquisition of armored electric vehicles. However, the Trump administration has decided to pause these plans following reports of a possible $400 million order.

A representative from the State Department indicated that Musk’s electric vehicle company—currently seeing him as a billionaire advisor to President Donald Trump focused on reducing federal agencies and workforce—was the sole entity to show interest back in May 2024, during Joe Biden’s presidency.

Initially projected to be the largest contract of the year, the Tesla deal indicated how Musk’s substantial wealth has, and was anticipated to continue to, derive from taxpayer funds before it was suspended. Musk’s enterprises consistently secure hundreds of millions of dollars in contracts annually. Notably, SpaceX has garnered nearly $20 billion in federal funding since 2008 for launching astronauts and satellites. Additionally, Tesla has already received $41.9 million from the U.S. government, which includes compensation for vehicles supplied to certain U.S. embassies.

The State Department confirmed that no contracts had been awarded to Tesla or any other manufacturer for the production of armored electric vehicles at this time.

In September, the Biden administration directed the State Department to compile information from potential suppliers for these vehicles. A formal request for bids was expected to be issued in May, as per State Department records from December. However, this solicitation is currently on hold with no plans to proceed, the agency stated.

Following the reports about the intended purchase from Tesla, the State Department revised its anticipated contracts data entry for fiscal year 2025 as of late Wednesday. The department clarified that it should have been categorized under a general “electric vehicle manufacturer,” but another entry for a separate acquisition continues to reference the German automaker BMW.