The State Department’s plan to acquire armored electric vehicles from a prominent electric car manufacturer has been unexpectedly paused by the Trump administration following a report outlining a substantial $400 million purchase agreement.
A spokesperson from the State Department shared that Musk’s company was the sole entity to show interest back in May 2024, during Joe Biden’s presidency. The deal, once in the planning stages, was anticipated to be the largest contract of the year. This highlights how significant portions of Musk’s wealth have been, and were slated to be, derived from taxpayer funds.
Notably, these funds aren’t new to Musk’s ventures. Since 2008, SpaceX, a company also under Musk’s leadership, has received close to $20 billion in federal contracts to launch astronauts and satellites into orbit. Similarly, the electric car company involved in the recent halted deal has already secured $41.9 million from the government for vehicles provided to U.S. embassies.
Despite the interest, the State Department clarified that no official contract had been granted to Tesla or any other firm for producing armored electric vehicles. This plan was initially set in motion by the Biden administration, which had directed the State Department to gather data from potential suppliers for these types of vehicles in September. An official request for proposals was planned for May, as per State Department records from December. However, with the current administration’s decision, the future of this solicitation remains uncertain.
After news of the projected purchase emerged, the State Department revised its expected contract listings for fiscal year 2025 late on Wednesday. Initially listed under a specific manufacturer’s name, such contracts should have generically been labeled as ‘electric vehicle manufacturer.’ Nevertheless, another planned purchase is still listing a prominent German automobile manufacturer, BMW.
Protests have arisen in response to the dealings, with individuals expressing discontent with Musk’s association with the Trump administration. Demonstrators gathered outside a showroom in Seattle, holding signs to voice opposition. While these protests highlight public sentiment, no clear resolution to the halted deal has been proposed yet.
The suspension of this large-scale vehicle purchase deal reflects ongoing complexities in government procurement, especially when intersecting with prominent business figures and their ventures. As it stands, the future direction or potential resumption of this deal remains uncertain.
