TRUMP ADMINISTRATION PUTS $400 MILLION ARMORED TESLA VEHICLE PURCHASE ON HOLD

The Trump administration has put on hold a planned purchase of $400 million worth of armored Tesla vehicles, according to a State Department document. The purchase, initially slated for September 2025, was part of the federal government’s procurement plan for the fiscal year. However, the State Department announced on Thursday that it no longer plans to fulfill the contract.

The document, which was edited to remove the word “Tesla” after reports of the planned purchase surfaced, now refers to the contract as $400 million worth of “armored electric vehicles.” Tesla’s Cybertruck, with its militaristic design and stainless steel exterior, was seen as a potential option for the government’s armored vehicle needs.

Responding to a segment by MSNBC’s Rachel Maddow about the $400 million contract, Elon Musk, Tesla’s CEO and a top White House official, wrote on X: “Hey @Maddow, why the lie?” Musk has been leading the Department of Government Efficiency, a unit focused on shrinking the federal workforce and ferreting out corruption.

The State Department stated that the contract originated in the Biden administration as an effort to explore interest from private companies in producing armored electric vehicles. Tesla was the only company to express interest at the time. However, the solicitation process is now on hold, according to a State Department spokesperson.
Musk’s involvement in the government has raised concerns about potential conflicts of interest, given his leadership of six companies, including Tesla and SpaceX, which have multibillion-dollar contracts with the federal government. Ethics experts have warned that Musk’s deputies’ access to nearly two dozen federal agencies could create conflicts of interest.
The State Department document also reveals that some Tesla competitors, including BMW, are set to receive smaller contracts for armored vehicles. BMW is expected to supply about $40 million worth of SUVs to the federal government.