The US Government’s State Department denies it plans to buy a fleet of armoured Tesla electric vehicles (EVs), despite reports claiming it was going to pay US$400 million to the company run by one of its employees.
The Associated Press reports the State Department had agreed to a deal with Tesla to purchase an undisclosed number of yet-to-be revealed armoured vehicles, off the back of discussions of expressions of interest opening in May 2024.
While Joe Biden was President at the time of the US Government first seeking expressions of interest from potential suppliers, reports emerged last week that new President Donald Trump’s State Department had signed a deal with Tesla to supply the vehicles for US$400 million (A$629.9 million).
A document showing the State Department’s expected contracts forecast included Tesla as the armoured vehicle supplier, however this has since been amended.
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A Tesla Cybertruck allegedly supplied to a Russian warlord -
This garnered particular interest as Tesla’s CEO is Elon Musk, who heads up the new Trump-created Department of Government Efficiency (DOGE), and has aligned himself closer with the President within the past year.
According to the Associated Press, the State Department had been asked to gather information from potential armoured vehicle suppliers in September 2024, and bids were officially due to open in May 2025.
NPR reports word from a State Department spokesperson that Tesla was the only company to express interest, and that the next step would be an “official solicitation” for manufacturers to compete for the contract. That is now on hold, according to the spokesperson.
The past six months have seen President Trump and Mr Musk become ever closer, with the latter throwing support behind the former in the lead-up to the US election in November.
This was despite the President-elect making EVs a major target in his campaign, which included him falsely claiming the US government has mandates that will require electric vehicle (EV) sales to reach 100 per cent.
At his inauguration ceremony, President Trump rescinded a non-binding agreement for half of US new automobile sales to be of electric vehicles (EVs) by 2030.
Prior to being sworn in, last month news agency Reuters reported Mr Trump’s transition team would axe the federal tax credit for EVs, worth up to US$7500 (A$11,625), shortly after his inauguration – though this has not yet occurred.
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