Tesla’s $400 Million Armored Vehicle Deal with State Department Put on Ice Amid Controversy

The U.S. Department of State has put its plans on hold following reports of a potential vehicle supply contract with Tesla, which sparked controversy.

Bloomberg and The New York Times reported on the matter on Thursday. The State Department’s projected 2025 budget included a $400 million allocation for Tesla armored vehicles.

The revelation of this document raised eyebrows, particularly as Elon Musk, the head of the Department of Government Efficiency (DOGE), would potentially supply his own company’s products to a government agency.

The NYT reports that the State Department has removed the Tesla armored vehicle from its budget list in response to the controversy. The current budget proposal no longer explicitly mentions Tesla, instead using the generic term “electric armored vehicles.” 

A State Department spokesperson clarified that no contracts have been signed for electric armored vehicles with Tesla or any other manufacturer, and there are currently no plans to do so.

Musk himself distanced Tesla from any potential deal with the State Department. Responding to a post about the news on X (formerly Twitter), he stated, “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”