The Trump Administration Might Just Spend $400 Million on ‘Armored’ Teslas
As Elon Musk‘s so-called Department of Government Efficiency (DOGE) continues its punitive onslaught against government agencies in what he claims is an effort to reduce wasteful spending, his own companies continue to enjoy lucrative federal contracts. Tesla and SpaceX have been awarded some $230 million worth in contracts so far in 2025, on top of billions claimed over the past several years.
On Wednesday, Drop Site News reported that President Donald Trump’s State Department, led by Marco Rubio, expects to pay $400 million for some kind of “armored” Tesla vehicles. Don’t worry — Musk, now a special government employee for Trump, has assured the public that potential conflicts of interest as he unilaterally decides where government funds are directed will not be an issue.
The $400 million budget item appeared on the State Department’s 2025 procurement forecast, updated on Dec. 23, during Trump’s transition period and one month before his inauguration. The largest expense in the document, it’s expected to span five years, and describes a planned purchase of “Armored Tesla (Production Units).” The document did not specify whether this refers to Cybertrucks, though Musk has touted the toughness of the Tesla vehicle’s stainless steel exterior and called it a “futuristic battle tank.” The truck, however, has been criticized for its production quality, which has resulted in multiple recalls since its debut in 2023. Retail sales have disappointed.
“No government contract has been awarded to Tesla or any other vehicle manufacturer to produce armored electric vehicles for the Department of State,” a State Department spokesperson told Rolling Stone on Thursday. “The previous administration asked the Department of State to explore interest from private companies to produce armored electric vehicles. In response to that request last year, the department did a public request for Information for an armored electric vehicle to solicit interest. The department received interest from only one company at that time.”
The spokesperson added, “However, the solicitation is on hold, and there are no current plans to issue it.”
Neither the Trump White House nor Musk responded to requests for comment on the procurement forecast for the armored vehicles, which had an “anticipated award date” of Sept. 30.
As head of DOGE, Musk led the push to close the U.S. Agency for International Development, or USAID, calling it a “criminal organization.” The agency has been shuttered and absorbed under the State Department, and most of its staff is on the chopping block.
On Tuesday, Trump said he’s not worried about potential conflicts of interest arising out of Musk’s role overseeing agencies that provide his companies huge contracts.
“If we thought that, we would not let him do that segment or look in that area, if we thought there was a lack of transparency or a conflict of interest,” said Trump. “He’s a big businessman. He’s a successful guy. That’s why we want him doing this.”
The president separately claimed, without evidence, that Musk’s team at DOGE has uncovered “billions and billions of dollars in waste, fraud, and abuse.”
After this story was published, the State Department modified its procurement forecast to remove the word “Tesla.” It now says the department expects to spend $400 million on “Armored Electric Vehicles.”
Musk posted on X at 1:30 a.m. ET on Thursday: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
Now that the State Department says the $400 million expenditure is on hold, it looks like reporters may have helped DOGE save some real money.
This story has been updated to include new developments and include new comments from the State Department.
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