The U.S. State Department is not planning to award Tesla (TLSA) a $400 million contract to purchase armored vehicles. At least that’s what appears to be the case following the latest twist in a bizarre story about procurement and Tesla armored vehicles that has raised questions about Elon Musk’s role within the new administration.
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The State Department was planning to buy $400 million of “Armored Tesla” later this year, according to its 2025 procurement forecast, first detailed by reports in Drop Site News and the New York Times.
Procurement List Drops Tesla Reference
But suggestions of a conflict of interest due to Musk’s proximity to the White House and his role at the newly-minted Department of Government Efficiency (DOGE) may have prompted a change of heart.
An earlier version of the document, which can still be found, listed “Tesla Armored Electric Vehicles.” But an updated version has amended this to just “Armored Electric Vehicles,” while leaving in a separate line still referencing BMW AG (DE:BMW), whose armored X5 and X7 SUVs the State Department also wants to buy.
It’s unclear whether this actually means there never was a plan to purchase Tesla armored vehicles, or if the State Department has ditched its intention to make those vehicles Tesla, or if it still plans to go ahead with the Tesla purchase anyway while removing the reference to Tesla in the procurement list.
Responding to developments, Musk replied, “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
It’s worth noting that the original State Department procurement form was from before the Trump administration took over.
Interestingly, the original document mentioning Tesla listed the planned procurement under NAICS Code 311999, which Time notes is an industry code for miscellaneous food manufacturing. The updated version features NAICS Code 561613 for “Armored Car Services.”
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