Musk's conflict of interest: Is the government buying Tesla trucks?

By Al Mayadeen English
Source: News Websites
14 Feb 2025 08:51

As backlash hits Musk and the US government for potential conflicts of interest between the billionaire's companies and the state, recent reports have indicated a Tesla sale to the state department.

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President Donald Trump speaks with reporters as Elon Musk listens in the Oval Office at the White House, on February 11, 2025, in Washington. (AP)

Billionaire Elon Musk and the US State Department rejected reports indicating the agency was set to purchase $400 million worth of armored Tesla cybertrucks.

Musk heads the Department of Government Efficiency (DOGE), under which multiple programs and initiatives have been cut in an alleged effort to economize the government. However, recent reports claiming the State Department will purchase Tesla Cybertrucks, manufactured and sold by Musk's Tesla, have sparked significant backlash.

His six companies already benefit from approximately $20 billion in government contracts, in addition to multiple subsidies. The billionaire has insisted these contracts were awarded on merit and delivered value to taxpayers.

However, after donating more than $250 million to Donald Trump’s 2024 re-election campaign, Musk now leads a cost-cutting initiative across federal agencies—including those that have previously investigated or penalized his companies, Tesla and SpaceX.

The aggressive push by Musk’s DOGE to slash federal spending has largely unfolded on X, where he frequently highlights what he deems wasteful government expenditures. Major Trump administration announcements are now made on the platform, which Musk also uses to attack critics.

While both Musk and the State Department denied the reports, the agency's procurement forecast for 2025 showed that the government allocated $400 million for armored electric vehicles. The entry, initially published last December, was edited on Wednesday.

A copy reviewed by Axios showed an entry for the same amount, allocated for "Armored Tesla (Production Units)", which is aimed at Tesla's steel-covered Cybertrucks.

According to the State Department, no contract was allocated to Tesla. Meanwhile, Musk took to X to deny the allegations, saying, "I'm pretty sure Tesla isn't getting $400M. No one mentioned it to me, at least."

President Donald Trump also addressed the controversies surrounding Musk's conflicts of interest with the government, saying he would "not allow them."