Tesla CEO Elon Musk has responded to the news that the automaker would be awarded a $400 million contract from the U.S. Department of State to supply the U.S. government with armored electric vehicles.
Yesterday, we reported that according to the U.S. Department of State’s Procurement List for 2025, Tesla was set to win a $400 million contract to supply the government with armored EVs — most ideally, the Cybertruck would be used.
Tesla projected to win $400M Dept. of State contract for armored EVs
The expenditure was listed in the public list and was added by the previous White House as former President Joe Biden was still in office when Tesla was added to the list.
The list does not guarantee that a contract will be awarded, but it does show the Department of State’s “anticipated contract” offerings.
In a short 20 hours since the story was reported, a lot has changed.
First, the Department of State updated the list to remove Tesla’s name from the line where it listed the award, meaning it was either a mistake or a response to potential pushback the public might have.
🚨 The U.S. Department of State has now modified the Procurement List, removing the word “Tesla” from the row. It now simply says “Armored Electric Vehicles.”
Musk said he “is pretty sure” Tesla is not receiving $400m from the government for this project. https://t.co/VMavkS3ZQg pic.twitter.com/XjheceyVht
— TESLARATI (@Teslarati) February 13, 2025
Considering Musk’s position at the post of the Department of Government Efficiency (DOGE), it is understandable that some might have a problem with the contract if it were to be awarded.
Secondly, Musk has responded to claims that the contract was intended on being awarded to Tesla, as he said:
“I’m pretty sure Tesla isn’t getting $400m. No one mentioned it to me, at least.”
I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.
— Elon Musk (@elonmusk) February 13, 2025
There are still plans to launch a government fleet of both armored and plain EVs. Who will win those contracts and be awarded the opportunity to provide them is still up in the air.
Tesla is in a prime position to win those contracts because of its focus on domestic manufacturing and sourcing. In the U.S., Tesla’s Model Y was the most American vehicle, the Cars.com study showed. The Model S was fourth, the Model X was ninth, and the Model 3 was 21st.
The Cybertruck was disqualified from the list due to its gross weight.
Tesla also has the production capacity and a proven track record of fulfilling it, something else that will be a necessity with President Trump in the White House.
Other carmakers could potentially be in the running, but they will need to show their ability to handle manufacturing the fleet that the government could ultimately buy.
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