'Tesla Armored Vehicles' Listed in State Department Procurement Forecast
State Department Changes Stance Amid Favoritism and Conflict of Interest Controversy
Musk: "No Contract Signed with State Department"
After media reports suggested that Elon Musk's electric vehicle company Tesla is likely to sign a car supply contract with the State Department, the State Department announced that it would put the plan on hold amid controversy. This move is interpreted as a response to conflict of interest concerns raised over Musk, who oversees government budgets as head of the 'Department of Government Efficiency' (DOGE), supplying his company's products to government agencies.
According to US daily newspapers The New York Times (NYT) and The Hill, the State Department announced on the 13th (local time) that it had put on hold a plan to purchase armored electric vehicles worth $400 million (about 580 billion won). Musk, Tesla's CEO, is a key advisor and supporter of President Trump.
The previous day, the NYT reported that Tesla armored vehicles worth $400 million were included in a procurement forecast document outlining the State Department's expected purchases for 2025. This document was released in December last year, after President Trump's election but before his inauguration.
As head of the Department of Government Efficiency, leading efforts to reduce government agencies, spending, and personnel, Musk faced criticism that supplying his company's products to government agencies constitutes a conflict of interest.
In a statement that day, the State Department denied allegations of favoritism toward Musk's company and explained that the purchase plan was made at the Biden administration's request "to explore interest in electric armored vehicle production by private companies." It also stated that there are currently no plans to execute this purchase request.
In fact, Tesla's name has been removed from the current procurement forecast document, and the newly released State Department procurement document from the previous day only mentions "electric armored vehicles" without referring to Tesla. The State Department said that the electric armored vehicle procurement plan is no longer under discussion.
Musk also made it clear that Tesla will not sign the contract with the State Department. Sharing the news on his X account that day, he wrote, "I am confident Tesla will not receive $400 million from the State Department," adding, "At least no one has mentioned it to me."
The NYT reported that Musk's companies have secured numerous contracts under previous administrations, with the total contract value over the past five years reaching $13 billion (about 18.8 trillion won).
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