
- The State Department announced plans to acquire $400 million worth of armored electric vehicles this year.
- Rather than specifically purchasing Teslas, the department now refers to these investments as “Armored Electric Vehicles.”
- Elon Musk’s ventures have secured billions in government contracts and funding.
In a recent update, the State Department removed references to armored Teslas from its procurement forecast for 2025.
The original procurement document included a specific entry titled “Armored Tesla (Production Units),” pointing to Tesla’s products, which are affiliated with Elon Musk. This contract was highlighted as a five-year agreement valued at $400 million, making it the most substantial item in the forecast.
Following revisions, the procurement document now specifies “Armored Electric Vehicles” while retaining the $400 million valuation and five-year contract duration but omitting any mention of Tesla.
On Thursday, Musk commented on X, expressing skepticism about Tesla’s involvement, stating, “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
The original document was timestamped December 13, 2024, whereas the updated version shows February 12, 2025, at 9:12 p.m.
Requests for comments regarding these changes were not immediately answered by the State Department, the White House, or procurement representatives.
Procurement List Insights
This earlier version of the forecast was released during the Biden administration and last updated shortly before Donald Trump’s inauguration on January 20, 2025.
The earlier document did not specify which model of Tesla was under consideration for acquisition.
Tesla’s lineup includes various electric vehicles, such as sedans like the Model 3 and Model S, along with SUVs like the Model Y and Model X. Additionally, Tesla is set to release the Cybertruck, which Musk has touted as bulletproof.
Both the original and updated documents project a contract award date of September 30. They also feature contracts from various other manufacturers, including a $40 million procurement for armored BMW SUVs, specifically the X5 and X7 models.
Tesla did not respond to a request for comment from Business Insider.
Elon Musk’s Government Contracts
Elon Musk’s companies have inked numerous agreements with the government, receiving billions through various contracts and subsidies.
According to Gwynne Shotwell, president and COO of Musk’s space exploration company SpaceX, the firm has amassed $22 billion in government contracts as of November.
Musk now represents Trump’s initiatives for cutting government spending as the head of the Department of Government Efficiency (DOGE).
The White House has classified Musk as a “special government employee” who does not receive pay for his role, enabling him to manage his business interests, including Tesla and SpaceX.
During a recent press conference alongside Trump, Musk addressed potential conflicts of interest arising from his dual roles with DOGE and his companies.
“No, because you have to look at the individual contract. I’m not the one filing the contract; it’s people at SpaceX who will be submitting it,” Musk clarified.
“If you see any contract awarded to SpaceX that wasn’t the best value for the taxpayer, please let me know, as every single one has been,” he added.
Trump reassured the press on February 3 that Musk would be prohibited from involvement in government contracts that could present a conflict of interest.
“If there’s a conflict, we won’t let him get near it,” Trump stated.
This article has been updated to reflect the State Department’s recent adjustments to its 2025 procurement forecast, now listing $400 million for “Armored Electric Vehicles” instead of “Armored Tesla (Production Units).”
