The State Department announced on Thursday that it had suspended plans to purchase armored electric vehicles after it was revealed that the $400 million contract would benefit Tesla. The company, led by Elon Musk, has the backing of President Trump, with Musk being one of his most influential advisors and allies.
The agency denied that the purchase was designed to favor Musk, stating in a press release that the initiative stemmed from a request by the Biden administration “to explore private sector interest in producing armored electric vehicles.”
“The request is suspended, and there are currently no plans to issue it,” the State Department said.
The vehicle purchase was part of the State Department’s 2025 procurement forecast, a document intended to allow companies to compete for government contracts. It was published in December, after Trump’s election victory but before he took office.
Tesla’s name was removed from the document after the list was reported on Wednesday night. Plans to acquire vehicles from the company sparked controversy due to Musk’s close ties with Trump.
Musk spent more than $250 million to support Trump’s campaign, and Trump later appointed him to lead a cost-cutting initiative known as the Department of Government Efficiency, or DOGE.
The document did not specify which Tesla model the government intended to purchase, but the Cybertruck, with its high-strength stainless steel body, seemed the most viable option.
Later on Wednesday, a revised version of the procurement document appeared online, mentioning only “armored electric vehicles” and omitting any reference to Tesla. However, even that project has now been suspended, according to the State Department, which said it will continue accepting proposals from interested companies.
The plan to acquire armored electric vehicles, whether from Tesla or other brands, would have marked a shift in Trump’s government policy. During his first term, he issued executive orders to eliminate incentives and regulations promoting electric vehicles.
In contrast, EVs were a key part of former President Joe Biden’s climate agenda. In 2021, he signed an executive order urging federal agencies to transition to electric vehicles and set a goal for the entire government fleet to be emissions-free by 2035.
Despite this, the plan to spend $400 million on Teslas raised concerns, particularly because Musk has repeatedly criticized government spending on his social media platform, X.
Tesla did not respond to requests for comment, but Musk shared a post on X in which a supporter called MSNBC journalist Rachel Maddow’s report on the matter “defamatory.” He also claimed he was never informed of the State Department’s alleged plan to purchase armored Teslas.
Musk is already a major government contractor. Companies under his control have secured $13 billion in federal contracts over the past five years, primarily through SpaceX, his rocket company, which is one of the government’s largest suppliers.
The Cybertruck purchase plan was first reported on Wednesday by Drop Site News. However, Tesla would not have received the full $400 million, as part of the money would have gone to companies specializing in vehicle armoring, such as Armormax, based in Ogden, Utah.
Justin Johnson, chief operating officer of Armormax, confirmed in a brief phone interview that the Trump administration had shown interest in their product but declined to provide further details.
Despite the suspension of the contract, the Cybertruck remains an attractive option for government agencies seeking durable electric vehicles. Musk has described it as “apocalypse-ready,” though social media users have posted videos showing the truck struggling in extreme conditions like snow.
Other vehicles that could meet the procurement requirements include the GMC Hummer EV and the electric version of the Cadillac Escalade, both from General Motors. GM has a division that sells armored and reinforced vehicles to the U.S. government and other countries.
