Tesla Is Out: Gears Shifted on Armoured Vehicle Contract Amid US Scrutiny

The State Department’s planned $400 million purchase of “Armoured Teslas” has hit a roadblock. A 2025 procurement forecast, initially listing the purchase, was recently updated to remove Tesla’s name and instead specify “Armoured Electric Vehicles.” This change follows reports of potential conflict of interest due to Elon Musk’s prominent role in the Trump Administration, coupled with his leadership of Tesla.

The original forecast listed the procurement under a code associated with food manufacturing, raising further questions. The updated version correctly categorizes the purchase under “Armoured Car Services.” Despite the change, both versions of the forecast remained accessible on different State Department web pages as of late Wednesday.

The State Department clarifies that no contract has been awarded to Tesla or any other manufacturer for these vehicles. While the previous administration explored industry interest in producing armoured electric vehicles, including a Request for Information that garnered limited response, the subsequent solicitation is currently on hold.

Musk responded to the reports on X (formerly Twitter), stating he was unaware of any such contract. His leadership of the Department of Government Efficiency (DOGE), coupled with his ownership of companies like Tesla and SpaceX, which have significant interests in federal regulations and contracts, has raised concerns about potential conflicts of interest.

While Musk has emphasized DOGE’s transparency, suggesting his actions are open to scrutiny, the State Department’s move to remove Tesla’s name from the procurement forecast suggests a cautious approach. The future of the armoured electric vehicle contract, and Tesla’s potential involvement, remains uncertain.