The US State Department has updated its 2025 procurement forecast to remove a planned contract worth $400 million for “Armored Tesla,” citing concerns over potential conflicts of interest. The move comes after reports emerged about Elon Musk’s prominent role in the Trump Administration and his involvement with companies that could benefit from government contracts.
The original document listed the planned procurement under NAICS Code 311999, an industry code for miscellaneous food manufacturing. However, the updated version lists it under Code 561613 for “Armored Car Services,” without any other changes. The State Department claims it is simply updating its terminology to align with new federal guidelines.
Despite this, critics argue that Musk’s involvement in the Trump Administration and his ownership of Tesla could create a conflict of interest. A State Department official told TIME that no government contract has been awarded to Tesla or any other vehicle manufacturer for the production of armored electric vehicles. However, the solicitation process was put on hold due to concerns over potential conflicts.
Tesla CEO Elon Musk responded to questions about the incident, stating he is “pretty sure” his company is not getting the $400M contract. Musk has been vocal about transparency and ensuring that his companies are not benefiting from government contracts without proper scrutiny. The State Department claims it is committed to following federal guidelines to prevent conflicts of interest.
The update comes as the State Department’s new procurement forecast has sparked controversy over its potential influence on federal regulations and government contracts.
Source: https://time.com/7221880/state-department-2025-procurement-forecast-tesla-armored-electric-vehicles-musk