The State Department had been in talks with Elon Musk’s Tesla company to purchase armored electric vehicles, with plans for a potential $400 million purchase.
The Trump administration halted the deal after reports of the purchase amount surfaced.
Driving the news: Tesla expressed interest in the deal back in May 2024, during the presidency of Joe Biden.
- The deal with Tesla was expected to be the largest contract of the year, showcasing how some of Elon Musk’s wealth comes from taxpayer-funded contracts.
- SpaceX, another company owned by Musk, has received significant federal funds, while Tesla has received payments from the U.S. government before.
- The Biden administration had initiated plans for State Department procurement of armored electric vehicles from potential suppliers, but the solicitation for bids has been put on hold.
- After reports on the deal with Tesla surfaced, the State Department made changes to its data entry for expected contracts for fiscal year 2025.
