Elon Musk is facing intense criticism over a $400 million contract between his company, Tesla and the U.S. State Department. The deal, which involves the purchase of his company’s armored Cybertrucks, has raised conflict-of-interest concerns due to Musk’s dual role as Tesla’s CEO and a senior government official. Now, sources claim Musk has turned to President Donald Trump for support in the ongoing battle.
Only Musk’s Cybertrucks are built like a fortress
According to reports, the State Department’s 2025 procurement forecast, updated in December 2024, lists Tesla as the recipient of a $400 million contract to supply armored vehicles.
The document does not outright name the Cybertruck. But experts say that its stainless steel body makes it the most suitable option to fulfil the mandate that was initially put out there.
The deal is expected to last five years.
Government wants zero-emission vehicles, but who makes them?
It all started with a plan to convert government vehicles to zero-emission vehicles by 2035. This is when the U.S. government made the call for suppliers.
But it was only Tesla who responded to the original request for information (RFI) in April 2024. This, in turn, raised concerns about the lack of competition in the country.
The State Department initially planned to send an official solicitation to vehicle manufacturers, but the process is now on hold.
Is Musk DOGE’ing accountability?
Musk’s involvement in the deal has brought up questions of a conflict of interest. Since Trump’s election in November 2024, Musk has played an important role in the administration’s cost-cutting initiative, the Department of Government Efficiency (DOGE). He has also been outspoken about government waste, often posting on his social media platform – X – about overpriced federal expenses.
Now Americans are saying that Musk is benefiting from the very same system he claims to be reforming. Fueling these accusations is the fact that over the past five years, companies he owns or controls have secured more than $13 billion in federal contracts. SpaceX is one of the largest recipients.
The issue got worse after Drop Site News ran a report about Tesla’s planned contract. Shortly after the report was published, the State Department quickly and quietly edited its procurement documents, removing direct references to Tesla.
But metadata showed that these changes were made after the article went live. The department has also since not provided an explanation for the alteration, further adding speculation about political interference.
Who even wants a Cybertruck with its unreliability issues anyway?
Aside from the contract, the Cybertruck itself has faced challenges. Since its launch in late 2023, Tesla has only sold 39,000 units.
The vehicle, with its angular “Mad Max” design, has drawn mixed reactions. Musk has joked that the Cybertruck is “apocalypse ready,” but multiple recalls, including issues with windshield wipers, have raised doubts about its reliability.
Meanwhile Tesla revealed that it will not receive the full $400 million if the contract goes through. Some of that payment would go to companies like Armormax, which specializes in vehicle armoring. The firm, based in Utah, installs bulletproof glass and other security features.
Will Trump help save the day?
Amid growing criticism, Musk has reportedly asked for Trump’s help to see to it that the deal remains intact. But Trump has not publicly commented on the matter. Insiders suggest, however, that Trump still views Musk as a key ally in his administration’s push for economic reform and will likely oblige to help his dear friend.
Musk has also fired back at the media. After MSNBC’s Rachel Maddow covered the controversy, Musk responded on X (formerly Twitter), asking, “why the lie?” However, he did not specify what part of the report he was referring to.
