- Will Tesla lose out on lucrative US government contracts now that Elon Musk is closely associated with President Donald Trump?
Tesla has a firm say in the world of electric vehicles (EVs) and while it doesn’t yet offer armoured versions of any of its offerings, there were plans to supply the US State Department with such vehicles in a deal expected to be worth $400 million. But while the plans may still be on, the vehicles may not be from Tesla.
US media reported that the State Department junked plans of buying armoured EVs from Tesla after the name of the company emerged in an official document, prompting many to point to a potential conflict of interest. This is because Tesla is led by Elon Musk, a key figure in the US President Donald Trump administration. As per Time Magazine, the official State Department document has now been updated to remove ‘Tesla’ and refers only to armoured vehicles.
Time further refers to a State Department official who has confirmed that no contract for armoured vehicles has been awarded to either Tesla or any other vehicle manufacturer. The official further admits that while the State Department was tasked with probing interest from private players to manufacture armoured vehicles for the department when Joe Biden was the president of the country.
What is Elon Musk’s reaction?
Musk, CEO of Tesla, has reacted to the development and informed he is not aware of the matter at all. He took to X, a company he also owns, to clear the air.
Musk is currently leading the new Department of Government Efficiency (DOGE) which is essentially an advisory body created by Trump in his second term at the White House. DOGE is essentially tasked with assessing government bodies in the US and suggest ways to make each more efficient. It, however, is not an official government department and came into being through Trump’s presidential executive orders. Musk and his DOGE are facing the heat with accusations that it will be an extra-government body and that its legal position is unclear.
As such, the State Department awarding a contract for armoured vehicles to Musk-led Tesla will likely add fuel to the proverbial fire.
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First Published Date: 14 Feb 2025, 07:01 AM IST
