Tesla Inc. TSLA CEO Elon Musk on Thursday said that he is unaware of a potential contract for $400 million to provide armored vehicles to the government.
What Happened: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least,” Musk said in a post reply on social media platform X, formerly Twitter.
The U.S. State Department’s procurement forecast for 2025 had previously included a potential $400 million armored electric vehicle purchase from Tesla starting in the fourth quarter of 2025 and spanning five years.
However, the department has now dropped the name of the Musk-lead EV company from the document, instead choosing not to name a manufacturer, after it raised conflict of interest concerns provided Musk is now leading the Department of Government Efficiency in the Trump presidency.
The document, however, continues to list planned armored BMW X5/X7 purchases for $40 million as well as other armored sedan and EV purchases from unnamed manufacturers. All these contracts, however, are only in the planning stage.
Why It Matters: Tesla makes no military vehicles. However, the company touts the latest addition to its lineup- the Cybertruck- to be bulletproof. Musk has previously even termed the vehicle as the “finest in apocalypse defense technology.”
The premium variant of the Cybertruck is priced at around $100,000, and a $400 million contract would have got the government nearly 4000 Cybertrucks and provided a big boost to Musk’s EV company after it reported a drop in revenue from its automotive segment last year.
In 2024, the company reported a 6% drop in automotive revenue to $77.07 billion following a drop in annual deliveries and discounting aimed at increasing demand.
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