US Department of State plans to spend $400m on Tesla armoured vehicles
- by The Guardian
- Feb 13, 2025
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Thu 13 Feb 2025 11.57 EST
First published on Thu 13 Feb 2025 05.58 EST
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The US Department of State has removed the name âTeslaâ from a list of planned purchases, after an earlier version of the list said it would spend $400m buying new electric armoured vehicles, even as the carmakerâs boss, Elon Musk, leads efforts to slash government spending under Donald Trump.
A procurement forecast produced by the department showed the $400m (£320m) proposed spending on âarmoured Tesla (production units)â in December. The most likely Tesla model was the Cybertruck, the companyâs electric pickup, given Muskâs claims that the vehicle is bulletproof.
However, a spokesperson for the department said the document was incorrect, and should have been a generic entry reading âelectric vehicle manufacturerâ. The department said the order was on hold.
Nevertheless, the listing raises the possibility of more conflicts of interest for Musk, who is one of the biggest beneficiaries of US government contracts through the companies he controls.
Muskâs stake in Tesla accounts for the bulk of his $383bn wealth, but his rocket company, SpaceX, is the most important contractor providing space launch services to the US government.
Yet Trump has also put Musk in charge of the so-called department of government efficiency, or Doge, its name deriving from an internet dog meme. Musk has set about gutting government departments that he has accused â without providing substantiated evidence â of huge amounts of fraud and waste. Dogeâs efforts have been criticised as illegal by many experts, who have said it is part of a string of actions by the Trump administration that appear to disregard the US constitution.
Musk appeared to confirm the procurement plans on Thursday in a post on X, the social network he also owns, although he suggested that the sum the company could receive may be lower. Other contractors could be involved in upgrading vehicles, depending on the level of protection required.
Musk wrote: âIâm pretty sure Tesla isnât getting $400m. No one mentioned it to me, at least.â
Musk was asked about the possibility of conflicts of interest on Tuesday, before the revelation of the proposed armoured vehicle spending. Speaking to reporters in the White Houseâs Oval Office, he dismissed those concerns, claiming that his actions in cutting government spending were transparent.
âAll of our actions are fully public,â Musk said when asked about conflicts of interest. âSo if you see anything like, âElon, there may be a conflict there,â itâs not like people are going to be shy about it. They are going to say it immediately.â
The Department of State forecast document suggested the Tesla contract would be awarded at the end of September. It listed the procurement as in the âplanningâ phase.
The government spokesperson said the previous administration under Joe Biden had put out a request for armoured electric vehicles, but only one unnamed company had responded.
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