FORT LAUDERDALE, Fla. (AP) — The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase.

A State Department spokesperson said the electric car company owned by Musk, who has become President Donald Trump's billionaire adviser aiming to dismantle agencies and downsize the federal workforce, was the only one that expressed interest back in May 2024, when Joe Biden was president.

While it was in its planning phases, the deal with Tesla was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers before the plans were put on hold. His companies obtain hundreds of millions of dollars each year in contracts. SpaceX has secured nearly $20 billion in federal funds since 2008 to ferry astronauts and satellites into space. And Tesla had already received $41.9 million from the U.S. government, including payment for vehicles provided to some U.S. embassies.

No government contract had been given to Tesla or any other manufacturer to produce armored electric vehicles for the Department of State, the agency said.

The Biden administration had tasked the State Department to gather information from potential suppliers to buy these vehicles in September. An official request for bids was to be released in May, according to State Department data from December. But that solicitation is now on hold with no plans to issue it, the State Department said.

After reports emerged about the plans to buy from Tesla, the State Department changed the data entry on its expected contracts forecast for fiscal year 2025 late Wednesday. The State Department said it should have been entered into the system as a generic “electric vehicle manufacturer," but there is at least another entry for a different purchase that continues to list a company— German car manufacturer BMW.

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More