Mega "m" Deal: Tesla to Secure $400m Contract

The State Department is set to award a $400 million contract to Tesla for the production of "Armored Tesla" vehicles, according to a revised procurement forecast from December 2024, with the contract expected to last five years and list Elon Musk's company as the sole recipient.

The contract, which was modified a month after Donald Trump's election, has raised concerns about conflicts of interest given Musk's ownership of multiple companies, including Tesla and SpaceX, which have received federal contracts. The document does not specify which Tesla model will be purchased, but the Tesla Cybertruck's militaristic design and stainless steel exterior make it a potential candidate, despite issues with rust, finger pinches, and defective accelerator pedals since its launch in 2019.

The purchase has sparked questions about the competitive process, with the extent of competition listed as "TBD" and the State Department declining to comment on the matter. Other companies, such as BMW, are also expected to receive smaller contracts for armored vehicles. The document was edited after it was circulated, removing the mention of Tesla and instead referring to "armored electric vehicles," further fueling concerns about the transparency of the procurement process.

As the deal moves forward, it remains to be seen how the contract will be executed and whether the concerns about conflicts of interest will be addressed. The purchase of $400 million worth of armored Tesla vehicles is a significant development, and the public will be watching closely to see how the contract unfolds.