Elon Musk's Tesla is poised to secure a massive $400 million contract from the U.S. State Department for armored vehicles, according to federal procurement documents. The deal, which could last five years, is expected to be awarded in the fourth quarter of this year.
Listed as the largest pending contract in the department's procurement forecast, the modification appeared on December 13, 2024, just a month after President Trump's election victory.
The contract's competitive status remains unclear, with the listing marked "TBD." The State Department has yet to issue an official response, but the facility security clearance for the Teslas is marked "Secret."
Musk, the wealthiest man on earth and Trump's head of Government Efficiency (DOGE) has become the face of the administration's cost-cutting blitz. His deep ties in the White House and a direct hand in reshaping federal budgets have sparked conflict of interest concerns. Democrats have even started calling him "President Musk."
Since taking office, Trump has overseen sweeping changes in federal agencies, including ousting top officials and replacing regulators once critical of Musk's business dealings.
Investigations and enforcement actions against Musk-led companies, including FAA fines against SpaceX and a high-stakes SEC lawsuit, have been stalled or reversed under the Trump administration, per the New York Times.
The Department of Labor's Office of Federal Contract Compliance Programs, which had been investigating Tesla for workplace discrimination, was killed by an executive order on January 21.
Tesla's potential payday from the State Department is the latest development in the far-reaching Musk-Trump alliance. As DOGE continues its so-called "war on waste," many wonder if the biggest winner may be Musk himself.
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