Elon Musk, CEO of Tesla Inc., has stated that he is unaware of a potential $400 million contract to provide armored vehicles to the government. This statement was made in response to a post on the social media platform X, formerly Twitter.
What Happened
Musk replied to a post, saying: “I’m pretty sure Tesla isn’t getting $400M. No one mentioned it to me, at least.” This response suggests that Musk is not aware of any plans for Tesla to receive a large government contract for armored vehicles.
Background
The U.S. State Department’s procurement forecast for 2025 had initially included a potential $400 million armored electric vehicle purchase from Tesla, starting in the fourth quarter of 2025 and spanning five years. However, the department has since removed Tesla’s name from the document, instead choosing not to name a manufacturer. This decision was made after concerns were raised about a potential conflict of interest, given Musk’s role in the Department of Government Efficiency.
Other Planned Purchases
The document still lists planned armored vehicle purchases, including:
- $40 million for armored BMW X5/X7 vehicles
- Other armored sedan and EV purchases from unnamed manufacturers
All of these contracts are currently in the planning stage.
Why It Matters
Tesla does not currently produce military vehicles. However, the company’s Cybertruck is touted as being bulletproof, with Musk previously referring to it as the “finest in apocalypse defense technology.” A $400 million contract would have been a significant boost to Tesla, which reported a drop in revenue from its automotive segment last year.
Potential Impact
A contract of this size would have allowed the government to purchase nearly 4,000 Cybertrucks, given the premium variant’s price of around $100,000. This would have been a significant order for Tesla, which reported a 6% drop in automotive revenue to $77.07 billion in 2024.
Conclusion
Musk’s denial of knowledge about the potential contract has raised questions about the future of Tesla’s involvement in government contracts. As the company continues to navigate the evolving automotive landscape, it remains to be seen whether Tesla will pursue opportunities in the armored vehicle market.