U.S. State Department's $400M deal with Tesla raises flags
The U.S. Department of State intends to allocate $400 million to purchase armoured Tesla Cybertruck vehicles. The head of the company, Elon Musk, an advisor to President Donald Trump, has a chance for another lucrative contract. Due to a potential conflict of interest, the transaction has sparked controversy.
The U.S. Department of State plans to purchase armoured Tesla Cybertruck vehicles for $400 million. According to "The New York Times," the Department of State included this item in the order forecast for this year. It was noted that the federal government planned to purchase armoured vehicles in December 2024, during Joe Biden's administration.
Tesla to supply armoured vehicles to the U.S. government
Including Tesla in this year's order project indicates that Elon Musk's company may gain another significant government contract. "NYT" reminds that thus far, Musk's companies have secured government contracts in the U.S. worth over $13 billion. Musk himself, who supported Trump and was involved in his campaign last year, headed an informal Department for Government Efficiency (DOGE), where he coordinated budget cuts.
The Cybertruck, an armoured Tesla vehicle built from durable stainless steel, is considered suitable for special tasks. However, purchasing from Musk's company raises questions about a potential conflict of interest.
The purchase of Cybertrucks from Tesla is not the only plan of the Department of State. The purchasing forecast also includes smaller quantities of armoured vehicles from other suppliers, including BMW SUVs for $40 million. Armormax, a company from Utah, is to handle the modification of Tesla vehicles, adding, among other things, bulletproof windows and other protections.
In January of this year, in one of the posts on the X platform, Musk warned that in the basic version of the Cybertruck, the body is bulletproof, but the windows are not. "Remember to duck if you see someone with a gun," the billionaire noted.
Musk, however, stated on another occasion that the Cybertruck, with its unique finish, is "ready for the apocalypse" and suitable for warfare. Tesla has repeatedly recalled various models due to serious defects.
Since the imposition of tariffs by the U.S. president, Tesla's stock prices have begun to decline rapidly. At the beginning of February, they were valued at $400 per share. This week they fell below $340. In total, since the December peak, Tesla's share price has decreased by 30 per cent.
