The U.S. State Department initially planned to purchase $400 million worth of “Armored Tesla” vehicles in 2025, as per its procurement forecast published in December. However, following concerns about a potential conflict of interest due to Tesla CEO Elon Musk’s role in the Trump Administration, the document was quietly revised on Wednesday, replacing “Armored Tesla” with the more generic “Armored Electric Vehicles.”
Interestingly, the earlier version listed the Tesla procurement under NAICS Code 311999, which pertains to food manufacturing—a clear classification error—while the revised version, modified at 9:12 p.m. on February 12, correctly categorizes the purchase under NAICS Code 561613 for “Armored Car Services.” Despite this adjustment, the rest of the document remained unchanged, still listing 319 other procurement items.
The State Department’s annual procurement forecasts are issued under the Business Opportunity Development Reform Act of 1988, which aims to provide small and disadvantaged businesses with contracting opportunities. This update raises questions about whether Tesla remains in contention for the lucrative contract, which is set to be awarded on September 30. TIME has reached out to both the State Department and Tesla for clarification.
Musk, who leads the newly formed Department of Government Efficiency (DOGE), a powerful agency influencing federal budgets and contracts, addressed concerns about conflicts of interest during a White House appearance on Tuesday. “Transparency is what builds trust,” he said, pointing to DOGE’s account on X (formerly Twitter), a platform he owns. “You can see: Am I doing something that benefits one of my companies or not? … I fully expect to be scrutinized.”
Former President Trump also weighed in, suggesting that oversight mechanisms would be in place. “If we thought there was a lack of transparency or a conflict of interest, we would not let him do that segment or look in that area,” Trump stated while sitting beside Musk in the Oval Office. Meanwhile, White House Press Secretary Karoline Leavitt indicated that Musk would largely be responsible for policing himself. “If Elon Musk comes across a conflict of interest with the contracts and the funding that DOGE is overseeing, then Elon will excuse himself from those contracts,” she said.
