Written by Cláudio Afonso | LinkedIn | X
The U.S. Department of State — under the Biden Administration — initially planned to award a $400 million contract for “Tesla armored electric vehicles.”
However, a new update on Wednesday to its procurement forecast has removed the automaker’s name, replacing it with a more generic reference to “Armored Electric Vehicles.”
The department’s most recent procurement forecast, last updated on December 13, 2024 listed Tesla as the recipient of the largest projected contract. The anticipated award date was set for September 30, 2025, with a five-year contract term.
However, late Wednesday, the U.S. government revised the publicly available forecast, eliminating any mention of Tesla. The reason for the change remains unclear.
“I’m pretty sure Tesla isn’t getting $400M,” Tesla CEO Elon Musk wrote on X. “No one mentioned it to me, at least.”
After being appointed by President Donald Trump to lead a newly created Department of Government Efficiency, referred to as “DOGE.” Musk has since advocated for deep cuts to government spending, frequently alleging, without evidence, widespread fraud and waste in federal agencies.
The procurement document lists contracts worth $50 million, $40 million, and $40 million for an “armored BMW X5/X7,” an “armored EV (not sedan),” and an “armored sedan,” respectively. Besides the BMW models, the manufacturers for these vehicles are not specified.
Tesla Sales in January
According to Motor Intelligence, Tesla U.S. registrations stood at 48,000 vehicles in the U.S., declining 10.8% from a year ago. The California New Car Dealers Association (CNDA) also stated last week that Tesla’s numbers in the state fell 12% from January 2024.
In Europe, January records declined up to 63% when compared to the first month of 2024. While France saw the largest drop, Germany’s registrations fell 59.5%. The sales in China decreased from 71,447 units in January 2024 to 63,238.
Late last month, the company said that this year “will be a seminal year in Tesla’s history as FSD (supervised) continues to rapidly improve with the aim of ultimately exceeding human levels of safety.”
Tesla’s Cybercab
In January, Elon Musk confirmed, in an earnings call, that the U.S. company is expecting production of the Cybercab to take off in 2026, with the price marked under $30,000. Tesla’s robotaxi is waiting for regulatory approval in other states.
Testing for the full self-driving (FSD) system is set to start in June, in Texas, with the brand’s first model without any pedals or steering wheel.
