A new document undercuts Trump admin's denials about $400 million Tesla deal
npr.org
The controversy started in a very Washington way: as a line item in a government spreadsheet buried on the State Department's website.
It appeared as if the State Department was taking steps to award Elon Musk's Tesla a $400 million government contract to buy armored electric vehicles to securely transport diplomats. The move to set in motion a lucrative contract to a company controlled by a high-profile ally of President Trump seemed so bold it surprised even longtime observers of the norm-busting president.
When asked about it, the State Department issued a statement saying the purchase is now on hold with no plans of fulfilling the contract, pointing out that talks with Tesla began during the Biden administration.
But NPR has obtained a State Department document detailing that Biden's State Department planned to spend just $483,000 in the 2025 fiscal year on buying electric vehicles and $3 million for supporting equipment, like charging stations. It represented less than 1% of the hundreds of millions of dollars likely destined for Tesla vehicles after the Trump administration quietly revised a State Department procurement document.
The vast discrepancy in the numbers raises the question: Was it an error or a deliberate action?
A former Biden White House official familiar with the State Department's plans told NPR the steps taken to advance $400 million worth of government business to Tesla appear to be intentional.
"I don't think this is a clerical error. It was likely someone who is new in [the] State [Department] who decided, 'OK, we're gonna do this with Tesla,'" said the former official, who was not authorized to speak about the matter.
The person said the State Department and Tesla had agreed during the Biden administration to conduct research about armoring electric vehicles, but no money had been set aside to purchase armored Teslas for the State Department. A total budget of $483,000 had been approved to buy light-duty EVs as possible State Department vehicles. That plan was moving forward as recently as November 2024.
The White House and Musk did not return multiple requests for comment.
In a statement to NPR on Monday, a State Department spokesperson said the $400 million figure was "an estimate," pointing out that it was in the early stages and was not yet a full contract, but rather a proposal "strictly to gather information."
The department spokesman added: "the Department of State has no intention to move forward with the solicitation."
In a Feb. 13 post on his social media platform, X, Musk, who is also a top White House official, said: "I'm pretty sure Tesla isn't getting $400M. No one mentioned it to me, at least."
After the original procurement document attracted widespread attention, NPR reported that the Trump administration appeared to have quietly edited the document, changing the phrase "armored Tesla" to the more generic "armored electric vehicles" without explanation. Eventually, the item vanished from the State Department's procurement document.
The document claims it was originally published in December, at the end of then-President Joe Biden's term, but it does not appear in the Internet Archive for that month.
The $400 million item in the procurement document caused a stir. Since then, Trump officials have not answered why the State Department appeared to be taking steps to pursue an acquisition of electric vehicles from Tesla, with the company's stainless steel Cybertruck likely being the most suitable option for an armored vehicle. The proposed purchase amount would likely exceed what the entire federal government would spend on electric vehicles in 2025.
The prospect of such a purchase also puzzled security professionals who work with the State Department.
"I can't imagine why the government would ever put dignitaries in a Cybertruck," said Jim McGuffey, an armored-car expert who does work with the State Department. "Compared to the other armored-car companies out there, it just wouldn't make any sense."
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