A new document undercuts Trump admin’s denials about $400 million Tesla deal

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's 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.

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.

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.

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 former President Joe Biden's term, but it does not appear in the Internet Archive for that month.