Lawmakers Seek Clarification from Rubio Regarding the $400 Million Tesla Armored Vehicle Deal

Lawmakers are urging Secretary of State Marco Rubio to provide clarification regarding a fraudulent government contract for armored Teslas. Senator Richard Blumenthal (D-NY) and Congressman Gregory Meeks (D-NY) have both penned letters to Rubio, detailing their concerns and posing questions that they expect him to address.
The letters pertain to a potential contract from the Biden administration’s State Department that would involve purchasing armored Teslas, which could have led to a $400 million windfall for the company owned by Elon Musk. Blumenthal’s letter indicated that considering Tesla vehicles for such a contract raises significant conflict-of-interest concerns, given Musk’s dual role as the CEO of Tesla, Inc. and as the effective leader of the Department of Government Efficiency.
As a member of the Senate Committee on Homeland Security and Governmental Affairs, and chairman of its Investigations subcommittee, Blumenthal’s letter, dated March 3, requests a response from Rubio by the specified date. Meeks, who serves as a ranking member of the House Committee on Foreign Affairs, sent his letter on March 7, demanding answers by March 14. He expressed concerns about potential unlawful procurement activities involving the State Department and Musk, suggesting that such actions would violate federal procurement laws.
The controversy over the armored Teslas surfaced when a report highlighted a line item in a State Department procurement forecast indicating a $400 million expenditure for armored Teslas. However, it’s important to note this forecast is not an actual budget but rather an outline of potential future spending. In the governmental budgeting process, funds are not immediately allocated; a Request for Information (RFI) is released, agencies sift through responses, followed by a thorough decision-making process to finalize spending. A new RFI addressing the armoring of electric vehicles is currently available.
The State Department clarified that mentioning “Tesla” was an error and insisted that the initiative under the Biden administration is not progressing. They noted only one response was received to the RFI they originally issued. Recently, they modified the procurement document to replace “Tesla” with “electric vehicle,” a move recognized in journalistic circles as a “stealth edit,” which can raise suspicion about the agency’s intentions.
Further developments saw NPR reporting documents that seemed to contradict the State Department’s claims. Though they did not disclose the details nor quote the documents directly, their report suggested that the Biden administration intended to allocate $483,000 in 2025 for the acquisition of “light-duty electric vehicles.” Notably, this figure is substantially less than $400 million and does not specify that the vehicles in question would be Teslas.
Blumenthal expressed worry about the feasibility of using Tesla’s Cybertruck model, characterized as a malfunctioning vehicle subject to various recalls since its introduction. He questioned whether the Cybertruck would be a viable option for State Department use, despite conflicting expert opinions on its suitability.
In an investigation of public government contracts, it was revealed that the State Department had indeed purchased electric vehicles over the past few years, including Teslas, amounting to around $500,000 for 2024. The majority of contracts involved Model Ys, primarily intended for use in Southeast Asia.
While Blumenthal focused extensively on the supposed procurement of Cybertrucks, Meeks redirected attention to the significant issue of the edited procurement documents, highlighting the ramifications of such actions. His remarks emphasized the notion that the Department of State may have attempted to obscure connections to Musk and Tesla while considering moving forward with the procurement.
Amid these discussions, it’s noteworthy that claims of graft and corruption surrounding Musk and his ventures, including SpaceX, have been widely circulated. Musk has suggested that his company could handle tasks that typical contractors have undertaken for government projects. He has publicly celebrated his interactions with agencies, signaling an ongoing trend where potential conflicts of interest could lead to significant issues in the future.
The possibility remains that if the State Department ultimately proceeds with purchasing Teslas, it could result in noteworthy public announcements and displays of support from both Musk and government officials, further illuminating the ongoing debate around corporate and governmental relationships.