State Department's Halted Electric Vehicle Purchase Sparks Controversy

The U.S. State Department's plan to purchase armored electric vehicles from Tesla has been paused by the Trump administration amid reports of a $400 million contract. Despite Tesla's previous government deals, no manufacturer has been awarded the contract, originally slated during the Biden administration.


Devdiscourse News Desk | Fortlauderdale | Updated: 14-02-2025 10:25 IST | Created: 14-02-2025 10:10 IST
State Department's Halted Electric Vehicle Purchase Sparks Controversy
US President Donald Trump (Photo/ANI) Image Credit: ANI

In a significant turn of events, the U.S. State Department's plans to acquire armored electric vehicles have come to a standstill. The initiative, which included discussions with Tesla for a deal reportedly worth $400 million, was put on hold by the Trump administration after details emerged about the prospective contract.

A spokesperson from the State Department revealed that Tesla was the sole interested manufacturer as of May 2024. Known primarily for his role as a billionaire adviser to then-President Donald Trump, Elon Musk's company was positioned to potentially secure the year's largest agreement. This development highlights the substantial taxpayer funds flowing into Musk-led enterprises, with SpaceX and Tesla having previously secured extensive federal contracts.

Under President Biden's administration, the State Department was tasked with sourcing potential suppliers back in September, with a formal request for proposals scheduled for May. Yet, this solicitation is now suspended indefinitely, according to recent State Department data. Confusion ensued after reports identified Tesla as the contractor, leading to a revision in the department's expected contracts forecast for 2025, originally describing the entry as a 'generic electric vehicle manufacturer.'

(With inputs from agencies.)

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