Did the U.S. State Department craft a $400 million windfall deal for Tesla and its CEO Elon Musk as payback for the executive’s leading role in the Trump administration? And is it now trying to cover up the truth behind the proposed purchase of armored versions of the Tesla Cybertruck? That’s a question one ranking member of the Senate is trying to find out.
During the November launch event, Tesla showed off a Cybertruck being riddled with gunfire.
New questions are being asked about the now-aborted plan by the U.S. State Department to purchase $400 million worth of armored Tesla Cybertrucks. And at least one ranking member of the Senate is questioning whether the Trump administration attempted a cover-up when the deal was revealed.
Sen. Richard Blumenthal, a Connecticut Democrat, is pressing U.S. Secretary of State Marco Rubio to explain who authorized the deal and when. While the State Dept. initially claimed the purchase was locked in place during the Biden administration that now appears to be false.
Critics are questioning whether the purchase was a payback to Tesla for the leading role its CEO Elon Musk is playing in the Trump administration. Evidence suggests that documents were manipulated, inflating what was to have been a $400,000 test to see if EVs could be armored for use to protect U.S. diplomats. It also appears Rubio’s State Department went back and rewrote those documents to make it appear the larger purchase was made while former President Joe Biden was still in office.
Musk rewarded?
In his role as head of the newly created Department of Government Efficiency, or DOGE, Musk has claimed to be tracking down and eliminating tens of billions of dollars in wasteful and corrupt federal spending — though DOGE has backed down on many of the claims as they’ve come under scrutiny.
Musk has been heading up the efforts of the newly formed Department of Government Efficiency to reduce waste and fraud in government.
One deal the controversial group didn’t appear to block would have generated $400 million in State Department spending for armored versions of the Tesla Cybertruck. It would have been a major plus for Tesla considering demand for the electric pickup has fallen off sharply after an early surge.
But, once revealed, the planned purchased quickly raised red flags, the British newspaper The Economic Times responding with the headline: “Is Elon Musk Running into a Conflict of Interest?” Shortly after the project came to light the State Department rewrote its 2025 procurement forecast. While it showed the agency was still looking for armored trucks it removed Tesla’s name, suggesting it had opened up to bids from other EV manufacturers.
Damage control
As the spotlight grew brighter, State Department officials attempted to defer blame. They initially pointed fingers at the Biden administration, claiming the proposed deal could be found in documents published before January’s inauguration of Donald Trumo.
But, in a letter to Sec. Rubio, Sen. Blumenthal noted “the document detailing the intent to spend $400 million on Tesla Cybertrucks is dated December 2024 but does not appear on the State Department’s website in that month in any form.”
Sen. Richard Blumenthal is pushing the State Department for answers about the purchase of $400 million worth of Cybertrucks.
There appears to be evidence that State officials may have intentionally rewritten the Biden-era documents. If accurate, they not only backdated the proposed Cybertruck purchase but radically increased the size of the deal. Under Biden, it appears, the plan was to spend $400,000, not $400 million, to see if armored EVs made sense for diplomatic use. Records do show that Tesla might have been rewarded with the smaller purchase because it was the only automaker to submit a bid.
“The question has been raised whether, after significant public blowback, the Trump Administration created and backdated government documents to make it appear that the idea to spend $400 million in taxpayer money on Tesla Cybertrucks originated with the previous administration,” Blumenthal’s letter to Rubio said. “If that occurred, the Trump Administration not only recognizes the tremendous conflicts of interest inherent in Mr. Musk’s dual roles, but is also taking active steps to hide the fact that it is ensuring that Mr. Musk’s position is benefitting his companies.”
More Trump News
- Trump Has Auto Industry in His Sights
- Trump Tariffs: Protectionism or Ploy?
- Tesla Stock Continues Nosedive as CEO Musk Takes Lead Role for Trump
No comment
Rubio has failed to reply to Blumenthal as of Wednesday.
Social media posts have shown several Tesla Cybertruck owners stuck in sand and snow, one needing to be towed out by a Ford F-150.
Musk initially denied any connection to the proposed purchase and has since failed to respond to questions from Headlight.News. (The company no longer maintains a media relations department.)
But the controversy has escalated criticism of both Musk’s role with DOGE and his other ties to the federal government. His various companies, notably including SpaceX, have generated tens of billions of dollars in contracts from various agencies, such as NASA.
Musk and Tesla have come under close scrutiny regarding another pending deal. The Federal Aviation Administration had previously approved a $2.4 billion project inked with Verizon. The FAA now is reportedly reconsidering whether to pull the contract from Verizon and instead award it to Starlink, the satellite communications subsidiary of SpaceX.
Musk’s government contracts have faced scrutiny before. Questions persist regarding a $2.4 billion Federal Aviation Administration telecommunications deal with Verizon, amid speculation that Musk’s Starlink, a division of SpaceX, could become a contender.
0 Comments