Rumors are swirling that the Fed is purchasing a $400 million worth of Tesla Cybertruck.
That would be a major conflict of interest given that Tesla Chief Elon Musk is increasing government efficiency in its campaign to curb government spending.
But is that true?
It's not according to Musk. “I'm sure Tesla hasn't won $400 million. At least no one's mentioning me.” Musk posted on x last week.
There are some explanations in place. Yes, some state officials are driving with special armored versions of stainless steel pickups. The US State Department is budgeting for a new “armored electric vehicle” over the next five years.
However, it is important to note that the budget was first drafted under the Biden administration last December. Next, I specifically included “Armorned Teslas” as one of my line items. It also included an armored sedan and armored BMW X5 and X7. The State Department's procurement list in December included $400 million in CyberTruck.
Under Trump, the State Department has changed all of them to a more common “armored electric vehicle.” The program has distribution goals for the next five years.
These were First listed under the code In the case of “other food manufacturing.” It was updated with the “Armorned Vehicle Service” code.
That could be a simple administrative error. But there are bigger questions left. No matter who makes these vehicles, why does the State Department need $400 million worth?
The State Department purchases all types of armored trucks and gas vehicles each year. My guess is that this is a teapot tempest and I think many of this government purchases will be cancelled.
We'll see if anything comes from this story.
