The US Department of State has removed Tesla from a list of planned purchases for high-tech armored vehicles, sparking concerns about potential conflicts of interest for Elon Musk and his companies.
The US Department of State has removed the name ‘Tesla‘ from a list of planned purchases, after an earlier version of the list suggested that the company would be a beneficiary of planned armoured vehicle purchases.
Tesla, Inc.
is an American electric vehicle (EV) and clean energy company founded in 2003 by Elon Musk, JB Straubel, Martin Eberhard, and Marc Tarpenning.
The company's first production car, the Tesla Roadster, was released in 2008, marking a significant shift towards sustainable transportation.
As of 2022, Tesla is one of the leading EV manufacturers globally, with over 1 million vehicles delivered worldwide.
The company's innovative approach to energy storage and renewable power has made it a pioneer in the clean energy sector.
The vehicles in question were thought likely to be Cybertrucks, given Elon Musk’s claims that the model is bulletproof. The Department of State had previously forecast spending $400m (£320m) on ‘armoured Tesla (production units)’ in December.
However, a spokesperson for the department said that the document was incorrect and should have been a generic entry reading ‘electric vehicle manufacturer.‘ The order was reportedly on hold.
This development raises concerns about potential conflicts of interest for Musk, who is one of the biggest beneficiaries of US government contracts through his companies. His stake in Tesla accounts for the bulk of his $383bn wealth, and his rocket company, SpaceX, is a major contractor providing space launch services to the US government.
Elon Musk is a South African-born entrepreneur and business magnate.
He is best known for his ambitious ventures in space exploration, electric cars, and renewable energy.
Musk's companies include SpaceX, Tesla, Neuralink, and The Boring Company.
With an estimated net worth of over $200 billion, he is one of the wealthiest individuals globally.
His innovative ideas have disrupted traditional industries and paved the way for sustainable technologies.
Musk has also been a pioneer in electric cars with Tesla's Model S, which revolutionized the automotive industry.
Musk’s Ties to Government Contracts
Musk has been put in charge of the Department of Government Efficiency (Doge), which has been criticized as illegal by many experts. Doge‘s efforts have been seen as part of a string of actions by the Trump administration that appear to disregard the US constitution.
In response to questions about potential conflicts of interest, Musk claimed that his actions were transparent and that any concerns would be immediately addressed. However, the revelation of the proposed armoured vehicle spending suggests that there may be more to consider.
The Procurement Process
The procurement forecast document suggested that the Tesla contract would have been awarded at the end of September, with the procurement listed as being in the ‘planning’ phase. However, a spokesperson for the Department of State said that the solicitation was on hold and there were no plans to issue it.
The removal of the reference to ‘Tesla‘ from the list of planned purchases suggests that the contract may not be moving forward as previously thought. The US government regularly procures armoured vehicles, with contracts valued at millions of dollars already in place for unnamed manufacturers.
The US government awards contracts to private companies for goods and services, totaling over $500 billion annually.
These contracts are subject to federal regulations and oversight.
The Federal Acquisition Regulation (FAR) governs the contract process, ensuring transparency and accountability.
Contractors must comply with laws, such as the Procurement Integrity Act, which prohibits bribery and bid-rigging.
The government uses various contract types, including fixed-price, cost-reimbursable, and time-and-material contracts, each suited for specific needs.
- theguardian.com | State department removes word ‘Tesla’ from $400m US armoured vehicles list
- caranddriver.com | U.S. State Department Pauses Plan to Buy Armored Teslas for $400M
