The US State Department has updated its procurement forecast, removing the mention of Tesla in a planned $400 million purchase of armored electric vehicles.
The procurement forecast, published in December, initially listed the purchase of “Armored Tesla” vehicles for 2025, a move that raised concerns about potential conflicts of interest due to CEO Elon Musk’s prominent role in government efforts to reduce spending.
Following reports on Wednesday regarding the potential conflict, the document was revised to replace the specific mention of Tesla with the more general term “Armored Electric Vehicles.” The updated forecast now lists this item under the “Armored Car Services” category, as opposed to the initial “miscellaneous food manufacturing” category. The change was made on February 12 at 9:12 p.m. and has since sparked further questions about whether Tesla will still be the intended recipient of the contract.
As of late Wednesday, both versions of the 2025 procurement forecast remain available on different State Department webpages, showing the revision alongside 319 other line items.
The initial inclusion of Tesla in the procurement forecast had raised eyebrows due to Elon Musk’s involvement in government affairs, particularly his leadership role in the newly created Department of Government Efficiency (DOGE). DOGE has been tasked with overseeing efforts to cut government spending, which has led to concerns about potential conflicts of interest when one of its leaders also owns companies, such as Tesla and SpaceX, that stand to benefit from government contracts.
Musk addressed questions regarding these concerns during a White House appearance on Tuesday, stating that DOGE operates transparently and that any potential conflicts would be disclosed. However, the White House Press Secretary suggested that Musk would “excuse himself” from decisions where conflicts of interest might arise, a stance that has not fully quelled public scrutiny.
The change in the procurement document raises questions about the future of the $400 million contract, which was originally intended for the purchase of armored vehicles, likely based on Tesla’s Cybertruck. Tesla’s electric Cybertruck, designed with a high-strength stainless steel body, is seen as a potential fit for the State Department’s needs, though it has only recently begun to gain traction in the market.
Despite the revisions, it remains unclear whether Tesla will ultimately secure the contract. The State Department also plans to purchase armored vehicles from other suppliers, including BMW, which still appears in the updated document for its armored X5 and X7 SUVs. However, the removal of Tesla’s name from the document follows heightened sensitivity regarding the possibility of conflicts of interest linked to Musk’s multi-faceted business empire.
Both Tesla and the State Department have yet to provide an official response to the change in the procurement forecast or offer clarification about whether Tesla will remain a part of the planned purchase. This situation highlights the ongoing complexities surrounding Musk’s overlapping roles in both the private sector and government affairs.
Over the past five years, Musk’s companies, including Tesla and SpaceX, have secured over $13 billion in federal contracts, with SpaceX accounting for the majority of that figure. The involvement of Tesla in such a high-profile government contract would significantly impact both the company and the broader debate on potential conflicts of interest in federal contracting.
Time, the New York Times, and Bloomberg contributed to this report.
