The potential conflict of interest surrounding Elon Musk has become a reality as he leads DOGE in Trump’s second administration. The State Department’s consideration of a vehicle supply contract with Tesla has led to widespread controversy, prompting the department to suspend its plans. Musk has distanced himself, stating that the State Department will not finalize any such contract.
On Thursday, the New York Times (NYT) and The Hill reported that the State Department announced it would postpone its $400 million plant to purchase electric armored vehicles.
The NYT previously reported on a procurement document published last December, before President Donald Trump’s inauguration, listing a $400 million purchase of Tesla armored vehicles for this year.
The report sparked controversy over Musk’s potential conflict of interest. As head of DOGE, Musk has been leading efforts to reduce government agencies and cut spending while potentially supplying his company’s products to these agencies.
The State Department issued a statement addressing the matter.
It refuted claims of granting preferential treatment to Musk’s company, explaining that the purchase plan was in response to the Biden administration’s request to explore private companies’ interest in electric armored vehicle production.
The State Department also clarified that it currently has no plans to proceed with this purchase request.
Tesla’s name has been removed from the current procurement forecast document. The newly released procurement documents do not specifically mention Tesla, referring only to “electric armored vehicles.”
The State Department emphasized that this electric armored vehicle procurement plan is not currently under consideration for purchase.
Musk responded to the news about his X by saying, “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.”
Meanwhile, Musk’s companies have secured numerous contracts under the Biden administration, totaling $13 billion over the past five years.
