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Trump's Close Ally Musk's Tesla Nears $400 Million Electric Armored Vehicle Contract Award

Tesla Armored Vehicles Listed in State Department Procurement Forecast
Cybertruck Seen as the Leading Supply Model
Conflict of Interest Raised as Musk Heads Government Efficiency Department

Elon Musk, CEO of Tesla, is reported to be highly likely to secure a contract to supply the U.S. government with $400 million (approximately 580 billion KRW) worth of electric armored vehicles. Given that Musk, who is scrutinizing the State Department's budget as part of government spending cuts, is the party signing the contract with the Department of Defense, a conflict of interest issue is expected to arise.


Trump's Close Ally Musk's Tesla Nears $400 Million Electric Armored Vehicle Contract Award Yonhap News


On the 12th (local time), The New York Times (NYC) reported that based on the U.S. State Department's recently announced 2025 'Procurement Forecast,' Tesla is highly likely to sign a contract to supply an armored version of the Cybertruck pickup to the State Department. The procurement forecast document from the State Department details the expected purchases, including a $400 million order for Tesla armored vehicles (Armored Tesla). If Tesla signs a contract with the State Department, it will be entering the defense industry beyond commercial vehicles, including military and special-purpose vehicles.


Although it has not been disclosed which Tesla model will be adopted as the armored vehicle, the Cybertruck is considered the most likely supply model. NYC also predicted that "the electric Cybertruck, made with high-strength stainless steel body, would be the most suitable vehicle."


Since the initial launch of the Cybertruck in 2023, Tesla has emphasized its powerful performance and body durability. This product has proven its bulletproof performance by undergoing various firearm attack tests on its stainless steel body panels. Musk jokingly remarked that the Cybertruck’s unique stainless steel exterior, designed like the movie 'Mad Max,' contrasts with the apocalypse and is suitable for war. Despite its distinctive design and features, Cybertruck sales have been sluggish. Last year, Cybertruck sales were estimated at 39,000 units.


In November last year, shortly after the presidential election, the Cybertruck was spotted in the motorcade escorting then-President Donald Trump during his visit to SpaceX’s Texas launch site, Starbase.


Some point out that if Tesla wins the government contract for electric armored vehicles, it could represent a conflict of interest. The concern is that Musk, who is involved in government-related work, has financial ties with entities the government does business with, which is deemed inappropriate. Musk donated at least 370 billion KRW in campaign funds to President Donald Trump during the last election and led the government advisory body, the Department of Government Efficiency (DOGE), under the Trump administration.


On the 5th (local time), Representative Murmark Fokan (Democrat, Washington) introduced the so-called 'Elon Musk Act,' which prohibits special government officials like Musk from securing federal government contracts.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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