Trump administration cancels $400M armored Tesla purchase plan: Here's why
What's the story
The Donald Trump administration has scrapped plans to award a $400 million contract for armored Tesla vehicles, according to a public State Department document.
The move comes amid growing concerns from ethics experts over potential conflicts of interest involving Elon Musk, Tesla's CEO and a close adviser to President Trump.
The State Department on Thursday confirmed it is scrapping plans to purchase $400 million worth of armored Tesla vehicles.
Conflict concerns
Scrutiny over Musk's role in government
The proposed federal purchase has been under scrutiny owing to Musk's dual role as Tesla CEO and a top White House official.
He currently heads the Department of Government Efficiency, a unit tasked with reducing the federal workforce and rooting out corruption.
The procurement document didn't specify which Tesla vehicles were to be purchased by US officials, but hinted Musk's Cybertruck could've been an option given its militaristic design and stainless steel exterior.
Document revision
Contract details edited amid controversy
After reports of the State Department's plan to purchase Tesla cars, NPR noted that the document was updated at 9:12pm to say that the federal contract is for $400 million worth of "armored electric vehicles," without the mention of the word "Tesla."
Addressing the controversy, Musk took to X, a platform he also owns, to clarify his position.
"I'm pretty sure Tesla isn't getting $400 million. No one mentioned it to me, at least," Musk tweeted on Thursday.
Contract history
Origin and status of the Tesla contract
The Tesla contract was started under the Biden administration "to explore interest from private companies to produce armored electric vehicles," a State Department spokesperson said on Thursday.
Back then, Tesla was the only company to show interest in the request.
The next step would usually be "an official solicitation" for vehicle manufacturers to bid for the contract. However, this solicitation is now on hold, the State Department spokesperson said.
Federal funding
Musk's influence and federal contracts under scrutiny
Musk, who donated over $250 million to Trump's election campaign, has leveraged an X account dedicated to DOGE to criticize what he sees as excessive or unnecessary federal contracts.
As his deputies have gained access to nearly two dozen federal agencies, ethics experts have raised alarm over potential conflicts of interest as Musk runs six companies, some of which are under government investigation.
His companies, including Tesla and SpaceX, also have multibillion-dollar contracts with the federal government.