In another episode of pretending there won’t be conflicts of interest with Elon Musk’s government appointment, the US State Department reportedly removed recently Tesla (NASDAQ: TSLA) from a public procurement forecast that had listed the automaker as the potential recipient of a lucrative $400 million contract.
The change came after media reports highlighted Tesla’s appearance on the forecast for a five-year program to purchase “Armored Tesla” vehicles, expected to begin in 2025. Initially, the document paired Tesla with BMW, whose name still appears for its armored X5 and X7 SUVs.
Now, Tesla’s listing has been replaced by a generic reference to “armored electric vehicles.”
This abrupt revision has renewed suspicions that Musk, in his dual role as CEO of Tesla and overseer of government spending through his Department of Government Efficiency, may allegedly be trying to shield any official contracts awarded to his companies. While Musk insists that all of his governmental activities will remain transparent, critics point to his extensive network of businesses—from Tesla to SpaceX—as grounds for tighter scrutiny. SpaceX has already benefited from billions of dollars in federal contracts, including high-profile collaborations with the US military and NASA, even before the second Trump administration.
The possibility of a major State Department purchase from Tesla underscores how lucrative government partnerships can be for Musk’s ventures. A $400 million deal for Tesla’s upcoming Cybertruck would mark a significant expansion of the company’s reach into specialized, high-profile vehicles—that is if the Cybertruck proves adaptable for security or even military applications.
The billionaire took to social media to address partly the issue, saying he’s “pretty sure” Tesla isn’t getting $400 million.
At a time when the federal government is pouring more resources into electric vehicle initiatives, Musk’s unique position could create new opportunities for self-dealing, even if inadvertently. Government officials have not explained why Tesla’s name disappeared from the public document, merely indicating that the contract may have at least turned to be open for armored electric vehicles in general.
Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
