U.S. State Department cancels $400 million armored vehicle deal with Tesla

In February 2025, reports emerged that the U.S. State Department initially planned to award a $400 million contract for armored vehicles to Elon Musk's company, Tesla. This deal, which was included in a procurement document, indicated the government's intent to purchase electric vehicles, specifically naming Tesla alongside other manufacturers. However, just weeks before the supposed award, Tesla's name was removed from the procurement list. The item had appeared in the December version of the procurement document, which indicated plans for spending over five years on armored Tesla vehicles but was suddenly scrubbed from the list. This unexpected withdrawal of Tesla from the procurement forecast occurred amidst rising scrutiny of Musk due to potential conflicts of interest related to his various roles within the Trump administration and his ownership of multiple companies. Concerns were raised regarding transparency and ethical implications, leading to the adjustment of the procurement document to reference only 'armored electric vehicles' without specifying any manufacturers. White House Press Secretary Karoline Leavitt mentioned that steps were being taken to avoid conflicts of interest, though she did not elaborate on specific measures. Furthermore, Musk himself publicly conveyed skepticism about the deal, stating on social media that he had not been informed of any intention to award Tesla the $400 million contract, suggesting a backdrop of uncertainty and confusion surrounding the potential contract.