Mention of Tesla Removed From $400 Million State Dept. Contract Amid Scrutiny of Musk

The State Department was planning to buy $400 million worth of “Armored Tesla” later this year, according to its 2025 procurement forecast, a document outlining projections of anticipated contracts, which was published in December. But after reports emerged on Wednesday of the potential for conflict of interest given Tesla CEO Elon Musk’s prominent role in the Trump Administration, the document was updated, removing mention of Tesla and changing the line item to “Armored Electric Vehicles” instead.

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As of late Wednesday, both versions of the 2025 procurement forecast remained available on different State Department webpages. The earlier version that mentions Tesla also lists the planned procurement under NAICS Code 311999, an industry code for miscellaneous food manufacturing, while the newer version, which says it was modified at 9:12 p.m., Feb. 12, lists the revised “Armored Electric Vehicles” procurement under NAICS Code 561613 for “Armored Car Services.” No other changes were made in the document, which contains 319 other line items.

The State Department website says it issues annual procurement forecasts pursuant to the Business Opportunity Development Reform Act of 1988, which “requires agencies to compile and make available projections of contracting opportunities small and small disadvantaged firms may be able to perform.” It is meant to give “small businesses, small disadvantaged businesses, women-owned small businesses, HUBZone small businesses, and service-disabled veteran-owned small businesses” opportunities to compete for direct contracts with the government or subcontracting opportunities.

TIME has reached out to representatives at the State Department and Tesla for comment on the change and clarification about whether Tesla remains the intended awardee for a contract that is anticipated to be awarded, according to the procurement forecast, on Sept. 30.

Musk, who leads the new Department of Government Efficiency (DOGE) that has begun to wield influence across a number of agencies’ budgets and who also owns and runs multiple companies that have significant interests in federal regulations and government contracts, including Tesla and SpaceX, responded to questions about potential for conflicts of interest on Tuesday during an appearance at the White House, insisting that DOGE is transparent about its actions. “Transparency is what builds trust,” he said, citing DOGE’s account on X, a platform Musk also owns. “You can see: Am I doing something that benefits one of my companies or not? … I fully expect to be scrutinized.”

Trump suggested there would be some oversight of Musk: “If we thought there was a lack of transparency or a conflict of interest,” he said Tuesday in the Oval Office beside Musk, “we would not let him do that segment or look in that area.” However, White House Press Secretary Karoline Leavitt previously suggested that the President is OK with Musk self-policing, saying: “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.”

Drop Site first reported on Tesla appearing in the State Department’s 2025 procurement forecast, while Bloomberg first reported on the updated forecast.

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