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The Trump administration has paused a potential $400 million State Department deal to purchase armored electric vehicles from Tesla. Initially pursued under the Biden administration, Tesla was the only company that expressed interest in May 2024.

While no official contract had been awarded, the deal was expected to be the largest of the year. Tesla, like Musk’s other companies, has received substantial federal funds—SpaceX has secured nearly $20 billion since 2008, while Tesla has received $41.9 million for previous vehicle contracts.

The Biden administration had planned to issue an official request for bids in May 2025, but the process is now on hold with no timeline for resumption. Following reports of Tesla’s involvement, the State Department adjusted its contract database entry from “Tesla” to “electric vehicle manufacturer.” However, another entry still lists BMW for a separate purchase.

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