The US State Department recently removed Tesla from a potential $400 million contract to supply armored Cybertruck vehicles. The contract, which was part of the 2025 fiscal year procurement forecast, included $400 million for “armored electric vehicles.” However, after an inquiry, the document was edited to remove Tesla’s name.
Elon Musk, the CEO of Tesla, denied reports that his company was securing the deal, calling them “fake news” and stating he had not been informed about any plans. The State Department said there are currently no plans to move forward with the contract, citing a generic entry for an electric vehicle manufacturer.
This development raises concerns about potential conflicts of interest involving Musk’s role as head of the Department of Government Efficiency (DOGE), which is examining government spending. Some experts have questioned whether Musk’s position will shield his companies from federal scrutiny.
The controversy surrounding Tesla and its $79,990 Cybertruck has sparked debate on social media and in the business community. Despite reports that the company’s sales may take a hit due to consumer backlash over Musk’s partisan role, shares have bounced back in recent trading sessions.
Source: https://www.forbes.com/sites/dereksaul/2025/02/13/elon-musk-denies-us-governments-possible-400-million-deal-to-buy-musks-tesla-cybertrucks-heres-what-to-know