Elon Musk's Tesla has lost a significant contract with the US government.
The company was set to provide $400 million worth of armored electric vehicles to the federal government.
This decision was made after a competitive bidding process, where Tesla's bid was not selected.
It's worth noting that the exact reasons for this decision are not specified in the article.
The contract was initially awarded to Tesla in 2020, but it's unclear what changed that led to the company's removal.
Tesla's electric vehicles are known for their performance and sustainability, but it seems that wasn't enough to secure this particular contract.
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Tesla Excluded from $400M Federal Contract
Tesla was initially set to receive a $400 million contract for armored vehicles, but the word "Tesla" was removed from the procurement document.
The procurement document was revised to indicate an intent to purchase "armored electric vehicles" without specifically naming Tesla.
A State Department spokesperson said the electric car company owned by Elon Musk was the only one that expressed interest in the contract back in May 2024.
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The contract was forecast to be the largest of the year, but it's now on hold.
The State Department changed the data entry on its expected contracts forecast for fiscal year 2025 late Wednesday, removing Tesla's name.
The document did not specify what Tesla vehicles would be purchased by U.S. officials, but Musk's Cybertruck could have been an option.
No government contract had been given to Tesla or any other manufacturer to produce armored electric vehicles for the Department of State.
The Biden administration had tasked the State Department to gather information from potential suppliers to buy these vehicles in September.
An official request for bids was to be released in May, but that solicitation is now on hold with no plans to issue it.
Tesla was the only company to express interest in the department's request at the time.
Typically the next step would be "an official solicitation" for vehicle manufacturers to compete for the contract.
But now, the solicitation is on hold, according to the State Department spokesperson.
The State Department document also shows that some Tesla competitors are set to receive lucrative, yet considerably smaller, contracts for armored vehicles, including from BMW, which is expected to supply about $40 million worth of SUVs to the federal government.
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Deal Cancellation
The State Department had been in talks with Elon Musk's Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration.
The deal was forecast to be the largest contract of the year, worth $400 million, but no government contract had been given to Tesla or any other manufacturer to produce armored electric vehicles for the Department of State.
The Biden administration had tasked the State Department to gather information from potential suppliers to buy these vehicles in September, but the solicitation is now on hold with no plans to issue it.
Elon Musk's Tesla had already received $41.9 million from the U.S. government, including payment for vehicles provided to some U.S. embassies, but the State Department said it should have been entered into the system as a generic “electric vehicle manufacturer.”
The procurement document was revised to indicate an intent to purchase “armored electric vehicles” without specifically naming Tesla, after reports emerged about the plans to buy from Tesla.
The State Department changed the data entry on its expected contracts forecast for fiscal year 2025 late Wednesday, removing Tesla's name from the document.
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