Abdelrahman
By ADRIANA GOMEZ LICON, Associated Press
FORT LAUDERDALE, Fla. (AP) — Negotiations between the State Department and Tesla, the electric vehicle company owned by Elon Musk, were underway for the acquisition of armored electric vehicles. However, these plans have been temporarily halted by the Trump administration following reports of a potential $400 million deal.
According to a spokesperson from the State Department, Musk’s Tesla was the sole company that indicated interest in this initiative back in May 2024, during President Joe Biden’s administration.
Initially, this agreement was anticipated to be the most significant contract of the year, highlighting how parts of Musk’s wealth have been generated or are projected to be generated through taxpayer funds. His enterprises regularly receive substantial government contracts. For instance, SpaceX has acquired nearly $20 billion in federal funding since 2008 for its missions involving the transportation of astronauts and satellites. Additionally, Tesla has previously received $41.9 million in government funding, which includes compensation for vehicles supplied to various U.S. embassies.
The State Department clarified that no contracts have been awarded to Tesla or any other manufacturer for the production of armored electric vehicles at this time.
The Biden administration had instructed the State Department to collect data from potential vendors for these vehicles as early as September. A formal solicitation for bids was scheduled for release in May, according to State Department documents from December. However, this procurement process is currently on hold, with no clear timeline for resumption, as stated by the agency.
After news broke regarding the potential Tesla purchase, the State Department updated its expected contract forecast for the 2025 fiscal year. It later indicated that the Tesla entry should have been classified under a general “electric vehicle manufacturer.” Nevertheless, there remains another entry on the forecast for a different procurement involving the German automaker BMW.
