A $400 million U.S. government contract for “armored Tesla” vehicles, recently put on hold, is facing scrutiny over how it was initiated and expanded after the 2024 election, new reports suggest.
Earlier this month, a procurement forecast from the U.S. State Department for the 2025 budget included a line item for “Armored Teslas” worth $400 million.
See also: U.S. Department of State Set to Award Tesla $400 Million Armored Vehicle Contract
The listing was added after the election but before the new administration took office in January. However, after public attention, the State Department removed “Tesla” from the entry, replacing it with “EV” and stating that the program was now on hold.
New details reported by NPR indicate that discussions about armoring electric vehicles had been ongoing under the Biden administration, but the initial budget for 2025 was far smaller—under $500,000. “The person said the State Department and Tesla had agreed during the Biden administration to conduct research about armoring electric vehicles, but no money had been set aside to purchase armored Teslas for the State Department,” NPR reported, citing sources familiar with the matter.
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The sudden jump from under $500,000 to $400 million remains unexplained. A former State Department official suggested it was unlikely to be a clerical error. “It was likely someone who is new in [the] State [Department] who decided, ‘OK, we’re gonna do this with Tesla,’” the former official told NPR.
In response to inquiries, a State Department spokesperson described the figure as merely “an estimate” and said the project was in its early stages, intended only to “gather information.” The department added that it “has no intention to move forward with the solicitation.”