Elon Musk claims $400 million Tesla contract is untrue

In January 2025, it was revealed that the U.S. State Department plans to spend $400 million on armored Tesla vehicles, marking one of the largest government contracts of the year. This extensive procurement initiative is set to last five years and aims to provide electric vehicles that can meet security standards. The procurement forecast was revised late December 2024 and later generated controversy due to allegations of conflict of interest concerning Elon Musk, who has undertaken various budget cuts within government agencies while still benefiting from large federal contracts through his companies, including SpaceX and Tesla. Musk's involvement with the government has raised eyebrows, particularly as he continues to attract significant contracts while pursuing efficiency measures that affect multiple federal organizations negatively. Critics claim the situation represents a clear conflict of interest, suggesting that Musk's influence over government budget decisions fuels selective spending, favoring his businesses.