State Department Plans $400 Million Purchase of Armored Tesla Vehicles

The State Department is looking to buy $400 million worth of vehicles from Elon Musk's electric vehicle company, Tesla.

The department's procurement forecast for 2025 listed a five-year contract with Tesla. This order would see the department purchasing "Armored Tesla (Production Units)" for the mentioned amount.

While the forecast did not specify the vehicle model to be acquired, Tesla produces several electric vehicles (EVs), including sedans like the Model 3 and Model S, and SUVs like the Model Y and Model X.

The use of the term "Armored Tesla" could potentially refer to Tesla's Cybertruck, a stainless steel pickup truck that Musk has claimed to be bulletproof. The proposed contract has an "anticipated award date" of September 30.

This contract with Tesla is identified as the largest budget item in the department's forecast. Additionally, the forecast includes orders from other automakers, such as a $40 million contract for armored BMW SUVs, specifically the X5 and X7 models.

Representatives for the White House, the State Department, and Tesla did not respond to requests for comments from Business Insider.

The Tesla contract would be among many deals that Musk's companies have secured with the government, with his holdings having received billions in contracts and subsidies. Gwynne Shotwell, the president and COO of Musk's rocket company SpaceX, previously stated that the company has $22 billion in government contracts.

Musk is currently known as the public figure leading Trump's cost-cutting initiatives within the government, serving as the leader of the Department of Government Efficiency, or DOGE.

According to the White House, Musk is classified as a "special government employee" and does not receive compensation for his services, allowing him to maintain his extensive business interests, which include Tesla and SpaceX.

During a recent press conference in the Oval Office with Trump, Musk was questioned regarding potential conflicts of interest from his role in DOGE coupled with his business operations.

Musk responded, "No, because you have to look at the individual contract. First of all, I'm not the one filing the contract. It's people at SpaceX or something will be putting for the contract," he elaborated. "If you see any contract where it was awarded to SpaceX and it wasn't by far the best value for money for the taxpayer, let me know, because every one of them was."

It is important to note that the department's forecast was prepared under the Biden administration and was last updated on December 23, 2024, a few weeks before President Trump was inaugurated on January 20.

Trump stated in an earlier press conference on February 3 that Musk would not be permitted to engage with government matters that might create a conflict of interest, asserting, "If there's a conflict, we won't let him get near it."