State Dept. removes Tesla from armored electric vehicle contract list

The U.S. State Department has removed mention of Tesla from a planned $400 million contract to buy armored electric vehicles. The move followed reports of the automaker's involvement in several media outlets on Wednesday.

The sudden change in the bidding documents

The December version of the document included a "Tesla armored" line item that was supposed to be part of a five-year budget plan beginning in 2025. However, after media reports, including Drop Site News and the New York Times, Tesla's $TSLAname was removed from the document.

In the original list, Tesla appeared alongside German automaker BMW $BMW.DE, which provides the armored X5 and X7 models. While BMW remains on the list, Tesla has been removed and its place taken by the general category of "armored electric vehicles."

Possible conflict of interest with Musk's companies

Tesla's involvement in government contracts raises questions about potential conflicts of interest. Elon Musk plays a key role in President Donald Trump's administration as head of the government's Office of Efficiency. Musk has repeatedly stressed that his department will operate transparently, but his position raises concerns, especially when his companies bid for government contracts.

Musk commented on the situation on his social network X, where he wrote that he is "pretty sure" Tesla won't get the $400 million.

Cybertruck and military ambitions

Although official information suggests that Tesla has been removed from the order, there is speculation that the order could be for a Cybertruck model. This futuristic electric car, manufactured at Tesla's Texas factory, costs $79,990 before tax rebates are applied. Musk has long made no secret of his fascination with military technology - he even spoke at the prestigious West Point Military Academy in August 2024.

In the past, Musk has hinted at possible military uses for the Cybertruck. "I wanted to create a futuristic battle tank, something that looks like something out of Blade Runner or Aliens," he told the Automotive News podcast in 2020.

While it's unclear now whether Tesla will get the government contract, Musk's entrepreneurial ecosystem, including SpaceX, has already received billions of dollars in contracts to work with the military and NASA. Whether Tesla will join that list remains an open question.

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Source: Yahoo Fianance