US State Dept walks back purported
$400 mn Tesla contract
By AFP
State Department Contract Document Edited to Remove 'Tesla' After Media Scrutiny
"This is what the tech oligarchy looks like," one writer said of a forecasted $400 million contract for the Elon Musk-owned company.
A Tesla cybertruck is pictured in Queens, New York on January 17, 2025.
(Photo: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
By AFP
February 14, 2025
WINS UGLY TRUCK AWARD
Tesla, whose electric Cybertruck is pictured, is a potential manufacturer of 'armored electric vehicles' for the US government - Copyright AFP/File
Tesla, whose electric Cybertruck is pictured, is a potential manufacturer of 'armored electric vehicles' for the US government - Copyright AFP/File
Patrick T. Fallon
The US State Department backtracked Thursday on a document saying it would award $400 million for electric armored cars by Tesla, whose chief Elon Musk has been aggressively slashing government spending on behalf of President Donald Trump.
Despite the denial, the share price of Tesla, the main source of the fortune of the world’s richest person Musk, was up more than four percent in morning tade, well outpacing the broader market.
A State Department forecast on procurements, published regularly for years as part of transparency efforts, said it expected to buy the Tesla armored vehicles over five years for use by US embassies.
After several media outlets reported on a Tesla contract, the language on the online document was altered to read simply “armored electric vehicles” without specifying the automaker.
The State Department said the mention of Tesla was in error as it had been the only company that had responded to an initial public message to solicit interest, which takes place before the actual bid.
“No government contract has been awarded to Tesla or any other vehicle manufacturer to produce armored electric vehicles for the Department of State,” a department spokesperson said.
“The solicitation is on hold and there are no current plans to issue it.”
Musk also walked back on Tesla winning the contract, or at least all of it, writing on X, the social media platform he owns: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
The push for electric vehicles, including for the US government, was initiated under former president Joe Biden, with the original document indicating a purchase from Tesla dating from December.
Despite his friendship with Musk, Trump has vowed to roll back Biden’s efforts to transition to electric cars and his other initiatives to fight climate change.
Musk has been aggressively seeking to scale down spending as head of the new Department of Government Efficiency, including by putting on leave virtually the whole staff of the US agency in charge of international aid.
The US State Department backtracked Thursday on a document saying it would award $400 million for electric armored cars by Tesla, whose chief Elon Musk has been aggressively slashing government spending on behalf of President Donald Trump.
Despite the denial, the share price of Tesla, the main source of the fortune of the world’s richest person Musk, was up more than four percent in morning tade, well outpacing the broader market.
A State Department forecast on procurements, published regularly for years as part of transparency efforts, said it expected to buy the Tesla armored vehicles over five years for use by US embassies.
After several media outlets reported on a Tesla contract, the language on the online document was altered to read simply “armored electric vehicles” without specifying the automaker.
The State Department said the mention of Tesla was in error as it had been the only company that had responded to an initial public message to solicit interest, which takes place before the actual bid.
“No government contract has been awarded to Tesla or any other vehicle manufacturer to produce armored electric vehicles for the Department of State,” a department spokesperson said.
“The solicitation is on hold and there are no current plans to issue it.”
Musk also walked back on Tesla winning the contract, or at least all of it, writing on X, the social media platform he owns: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
The push for electric vehicles, including for the US government, was initiated under former president Joe Biden, with the original document indicating a purchase from Tesla dating from December.
Despite his friendship with Musk, Trump has vowed to roll back Biden’s efforts to transition to electric cars and his other initiatives to fight climate change.
Musk has been aggressively seeking to scale down spending as head of the new Department of Government Efficiency, including by putting on leave virtually the whole staff of the US agency in charge of international aid.
State Department Contract Document Edited to Remove 'Tesla' After Media Scrutiny
"This is what the tech oligarchy looks like," one writer said of a forecasted $400 million contract for the Elon Musk-owned company.
A Tesla cybertruck is pictured in Queens, New York on January 17, 2025.
(Photo: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)
Jake Johnson
Feb 13, 2025
COMMON DREAMS
A State Department procurement document was edited Wednesday night to remove the name "Tesla" after media outlets highlighted a forecasted $400 million contract for the company led by Elon Musk, who is currently working to gut federal contracts at the U.S. Education Department and other government agencies.
An initial version of the State Department document was timestamped December 23, 2024—over a month after President Donald Trump's election victory and while former President Joe Biden was still in the White House.
NPRreported that the document was edited Wednesday night after several news outlets focused in on the inclusion of Tesla.
The original document listed an order for $400 million of "armored Tesla"; the altered version details a forecasted contract for "armored electric vehicles."
Drop Site's Ryan Grim, who first spotlighted the State Department document, noted that the electric vehicle order is "forecast to be the largest contract delivered by the State Department in 2025."
NPRnoted that "the document does not specify what Tesla vehicles will be purchased by U.S. officials, but Musk's Cybertruck, with its militaristic design and stainless steel exterior, could be an option."
"This is what the tech oligarchy looks like," said tech writer Brian Merchant in response to news of the forecasted contract, which is set to be awarded later this year.
Musk claimed to be unaware of the contract, writing on his social media platform that "no one mentioned it to me, at least."
Tesla is one of several Musk-led companies that have benefited from around $13 billion in federal contracts over the past five years.
The revelation that Tesla is set to receive another lucrative federal deal comes as Musk—who spent hundreds of millions of dollars to help elect Trump—and his lieutenants are rampaging through federal agencies and ripping up contracts at various departments, while also taking aim at critical government programs.
ProPublicareported earlier this week that "the Trump administration has terminated more than $900 million in Education Department contracts, taking away a key source of data on the quality and performance of the nation's schools."
"The cuts were made at the behest of Elon Musk's cost-cutting crew, the Department of Government Efficiency( DOGE), and were disclosed on X, the social media platform Musk owns, shortly after ProPublica posed questions to U.S. Department of Education staff about the decision to decimate the agency's research and statistics arm, the Institute of Education Sciences," the investigative outlet noted.
Feb 13, 2025
COMMON DREAMS
A State Department procurement document was edited Wednesday night to remove the name "Tesla" after media outlets highlighted a forecasted $400 million contract for the company led by Elon Musk, who is currently working to gut federal contracts at the U.S. Education Department and other government agencies.
An initial version of the State Department document was timestamped December 23, 2024—over a month after President Donald Trump's election victory and while former President Joe Biden was still in the White House.
NPRreported that the document was edited Wednesday night after several news outlets focused in on the inclusion of Tesla.
The original document listed an order for $400 million of "armored Tesla"; the altered version details a forecasted contract for "armored electric vehicles."
Drop Site's Ryan Grim, who first spotlighted the State Department document, noted that the electric vehicle order is "forecast to be the largest contract delivered by the State Department in 2025."
NPRnoted that "the document does not specify what Tesla vehicles will be purchased by U.S. officials, but Musk's Cybertruck, with its militaristic design and stainless steel exterior, could be an option."
"This is what the tech oligarchy looks like," said tech writer Brian Merchant in response to news of the forecasted contract, which is set to be awarded later this year.
Musk claimed to be unaware of the contract, writing on his social media platform that "no one mentioned it to me, at least."
Tesla is one of several Musk-led companies that have benefited from around $13 billion in federal contracts over the past five years.
The revelation that Tesla is set to receive another lucrative federal deal comes as Musk—who spent hundreds of millions of dollars to help elect Trump—and his lieutenants are rampaging through federal agencies and ripping up contracts at various departments, while also taking aim at critical government programs.
ProPublicareported earlier this week that "the Trump administration has terminated more than $900 million in Education Department contracts, taking away a key source of data on the quality and performance of the nation's schools."
"The cuts were made at the behest of Elon Musk's cost-cutting crew, the Department of Government Efficiency( DOGE), and were disclosed on X, the social media platform Musk owns, shortly after ProPublica posed questions to U.S. Department of Education staff about the decision to decimate the agency's research and statistics arm, the Institute of Education Sciences," the investigative outlet noted.
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