The U.S. State Department announced earlier in the week that it is scrapping plans to purchase $400 million worth of armored Tesla vehicles, following widespread public criticism. The proposed deal, originally scheduled for finalization in September 2025, has now been halted indefinitely, with officials confirming that there are no immediate plans to proceed.
The contract drew significant scrutiny due to Tesla CEO Elon Musk’s dual role as a senior White House adviser overseeing the Department of Government Efficiency—a unit tasked with reducing federal spending. Critics raised concerns about a potential conflict of interest, as Musk’s companies, including Tesla and SpaceX, hold numerous government contracts, some of which are currently under federal investigation, noted The Hill.
According to The New York Times, the agency pushed back against the idea that Musk, who is worth over $400 billion, was pushing for the project to continue.
“The solicitation is on hold, and there are no current plans to issue it,” the State Department said.
The planned purchase was listed in the department’s procurement forecast for 2025, which is intended to give businesses a chance to compete for projects. The document was published in December, after Mr. Trump won the election but before he took office.
The State Department document did not specify which Tesla model it planned to buy, but the electric Cybertruck, which has a body of high-strength stainless steel, would be the most suitable.
Later on Wednesday, a different version of the procurement document appeared online. It referred to “armored electric vehicles,” omitting any mention of Tesla. But even that project is no longer being discussed, the department said. It said it would still allow companies to submit proposals.
A State Department spokesperson explained that the contract process began under the Biden administration as part of an effort to explore the viability of armored electric vehicles for federal use. At the time, Tesla was the only manufacturer that expressed interest, wrote NPR. The next phase, which would have involved a competitive bidding process, has now been suspended.
Tesla is not the only company vying for government armored vehicle contracts. The same federal document that outlined the now-canceled Tesla purchase also detailed plans for BMW to supply approximately $40 million worth of SUVs to the U.S. government—a significantly smaller but still notable deal.
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