Tesla holds a significant position in the electric vehicle (EV) market, and although it currently does not provide armoured versions of its models, there were intentions to supply the U.S. State Department with such vehicles in a deal projected to be valued at $400 million. However, while these plans may still be under consideration, it appears that the vehicles may not be sourced from Tesla.

Reports from U.S. media indicate that the State Department has abandoned its plans to procure armoured EVs from Tesla after the company's name was mentioned in an official document, raising concerns about a possible conflict of interest. This situation arises from the fact that Tesla is led by Elon Musk, who is a prominent figure in the administration of former President Donald Trump. According to Time Magazine, the official document from the State Department has since been revised to exclude the name 'Tesla' and now refers solely to armoured vehicles.

Time also cites a State Department official who has confirmed that no contracts for armoured vehicles have been awarded to Tesla or any other manufacturer. The official acknowledged that the State Department had been exploring interest from private companies to produce armoured vehicles for the department during Joe Biden's presidency.

What is Elon Musk's reaction?

In response to these developments, Elon Musk, the CEO of Tesla, has stated that he is not aware of the situation. He took to X, a platform he also owns, to clarify his position.

Musk is presently at the helm of the newly established Department of Government Efficiency (DOGE), an advisory entity initiated by Trump during his second term in office. The primary function of DOGE is to evaluate various government agencies in the United States and propose methods for enhancing their operational efficiency. However, it is important to note that DOGE does not hold the status of an official government department, having been formed through executive orders issued by Trump. Musk and his team at DOGE are encountering significant scrutiny, facing allegations that the body may operate outside the bounds of government and that its legal standing remains ambiguous.

Consequently, the State Department's decision to award a contract for armoured vehicles to Tesla, under Musk's leadership, is likely to exacerbate the ongoing controversy.

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