The U.S. State Department has put on hold its plan to purchase Tesla electric armored vehicles worth $400 million (approximately 580 billion won).
This is interpreted as a response to the conflict of interest controversy surrounding Elon Musk, who is both the chief executive officer (CEO) of Tesla and the head of the Department of Office of Management and Budget (DOGE) under the Trump administration.
According to foreign media, including The New York Times (NYT) and The Hill, on the 13th (local time), the U.S. State Department stated that it has put on hold the purchase plan for electric armored vehicles initially budgeted at about $400 million.
The previous day, NYT reported that a procurement forecast document outlining the State Department's expected purchases for 2025 included a plan to buy $400 million worth of Tesla armored vehicles.
Immediately, as the head of DOGE leading institutional downsizing and workforce reduction, Musk faced controversy over the conflict of interest regarding his company supplying products to government agencies.
Musk had already faced one instance of conflict of interest controversy. In addition to Tesla, companies managed by Musk, including SpaceX, have secured large contracts from the federal government.
In a statement that day, the State Department refuted claims that it had favored Musk's companies, clarifying that the purchase plan was intended "to explore interest in the production of electric armored vehicles by private corporations."
It added that, for now, there are no plans to execute this purchase request. Currently, Tesla's name has been removed from the procurement forecast document, which now only states 'electric armored vehicles.'
Musk has drawn a line, stating that there will be no contract sealed with the State Department. He wrote on X (formerly Twitter) that he is "confident Tesla will not receive $400 million."