DOS targets $400m Cybertruck deal amid conflict of interest concerns
The U.S. Department of State plans to allocate $400 million to purchase armored Tesla Cybertruck vehicles. The head of the company, Elon Musk, is an advisor to President Donald Trump and thus has the potential for another lucrative contract. Due to a possible conflict of interest, this transaction has raised controversy.
The U.S. Department of State plans to purchase armored Tesla Cybertruck vehicles for $400 million. According to "The New York Times," the Department of State has included this item in its order forecast for the year. It is noted that the federal government plans to purchase these armored vehicles by December 2024, which falls during Joe Biden's administration.
Tesla to supply armored vehicles to the U.S. government
The mention of Tesla in this year's order forecast suggests that Elon Musk's company could secure another valuable government contract. The "NYT" points out that so far, Musk's companies have received government contracts in the U.S. worth over $13 billion. Musk, who has supported Trump and participated in his campaign last year, headed an informal department for government efficiency (DOGE), coordinating budget cuts there.
The Cybertruck, an armored vehicle crafted from durable stainless steel, is deemed suitable for special operations. However, purchasing it from Musk's company raises questions of conflict of interest.
The Cybertruck procurement from Tesla is not the Department of State's only plan. Their purchasing forecast also includes smaller quantities of armored vehicles from other suppliers, such as BMW SUVs for $40 million. Armormax, a Utah-based company, will modify the Tesla vehicles, incorporating features like bulletproof windows and other protective measures.
In January, on one of his posts on the X platform, Musk warned that the body is bulletproof in the basic version of the Cybertruck, but the windows are not. He humorously advised, "Remember to duck if you see someone with a gun," the billionaire added.
Musk has also stated on other occasions that the Cybertruck, with its unique finish, is "ready for the apocalypse" and capable of handling warfare. Tesla has repeatedly recalled various models due to serious defects.
Since the imposition of tariffs by the U.S. president, Tesla's stock prices have rapidly declined. At the beginning of February, shares were valued at $400 apiece. This week, they fell below $340. In total, since the December peak, Tesla's share price has decreased by 30 percent.
