Let’s talk about a deal that had everyone buzzing: the State Department exploring the idea of buying armored electric vehicles from none other than Tesla. Sounds like a futuristic, eco-friendly move, right? But, as it turns out, the brakes were slammed on this $400 million plan, and the reason might surprise you.
Here’s the scoop.
The Plan That Almost Was
Back in May 2024, while Joe Biden was still in office, Tesla was the only company to show interest when the State Department began seeking armored electric vehicle suppliers. The deal had the potential to be the year’s biggest government contract—an exciting leap toward modern, sustainable technology.
The Biden administration was keen on gathering information from potential suppliers, aiming to roll out a formal request for bids in May 2025. Everything seemed on track for a game-changing partnership.
But then came the plot twist.
A $400M Pause
When Donald Trump returned to the White House, his administration hit the brakes on the plan. Reports of a $400 million deal with Tesla caused a stir, leading to the project being shelved indefinitely. According to the State Department, no contracts had been awarded to Tesla—or any other company—for armored electric vehicles.
This wasn’t Tesla’s first brush with government funding, though. The company had already received $41.9 million for providing vehicles to U.S. embassies. And let’s not forget Musk’s other company, SpaceX, which has secured nearly $20 billion in federal funding since 2008. It’s safe to say Musk’s ventures have a solid relationship with Uncle Sam’s wallet.
Why the Sudden Change?
After the Tesla deal hit headlines, the State Department revised its contract forecasts. The original entry listing Tesla was updated to a more generic “electric vehicle manufacturer.” Interestingly, another entry in the system still specifies a different company: BMW, the German auto giant.
Could BMW swoop in as the new contender for the State Department’s armored EV dreams? Or will this remain another “what could have been” story?
What’s Next?
For now, the plan to buy armored electric vehicles is parked indefinitely. Whether Tesla—or any other manufacturer—gets a shot at this lucrative deal remains uncertain. But one thing’s clear: the intersection of politics, innovation, and government spending always makes for an intriguing tale.
