The U.S. Department of State said on Thursday that it had put plans to buy armored Tesla vehicles on hold. In September 2024, the federal government asked the department to gather information from potential suppliers for purchasing electric vehicles.
A State Department spokesperson confirmed to The Associated Press (AP) that just one company, Tesla, expressed interest in May 2024.
No government contract was given to Tesla or any other manufacturer to produce armored electric vehicles for the Department of State, according to the spokesperson.
An official request for bids was to be released in May 2024, according to State Department data from December 2024. That solicitation is now on hold with no plans to issue it, the State Department said.
Tesla CEO Elon Musk is leading the Trump administration’s efforts to reshape the federal government and reduce wasteful spending as head of the Department of Government Efficiency (DOGE).
The government’s potential purchase of the vehicles from Tesla was listed in the department’s procurement forecast for 2025, which is essentially a list of prospective purchasing opportunities.
The list was initially published in December 2024 after President Donald Trump won the election but before he took office.
The department stated that the potential purchase of “Armored Tesla (Production Units)” for $400 million was in the planning phase. The State Department document did not specify which Tesla model was being considered at the time.
After reports of a potential deal emerged on Wednesday, a revised version of the document appeared online, omitting any mention of Tesla.
The State Department told the AP that the original entry was a mistake and that it should have been entered into the system as a generic “electric vehicle manufacturer.”
There is at least one other entry in the procurement forecast for a different purchase that does list a company: German car manufacturer BMW.
The Epoch Times has contacted the State Department and Tesla for further comment.
Musk has defended his position as head of DOGE amid questions over potential conflicts of interest.
Musk’s companies obtain hundreds of millions of dollars each year in contracts, with space technology company SpaceX securing nearly $20 billion in federal funds since 2008 to transport astronauts and satellites into space.
Tesla has also received $41.9 million from the U.S. government, including payment for vehicles provided to some U.S. embassies.
“Transparency is what builds trust,” the businessman said.
Trump followed up on Musk’s remarks by stating that the government would not allow Musk to “do that segment or look in that area if there was a lack of transparency or conflict of interest.”
