Tech

US State Department to stop buying Tesla cars

AP News reports that the US State Department is suspending a $400 million deal to buy armored vehicles from Elon Musk's Tesla.

The State Department was in talks with Musk's company to buy armored electric vehicles, but the Trump administration has suspended those plans.

A State Department spokesman said Musk's electric car company was the only one to show interest under Joe Biden in May 2024.

Although the deal with Tesla was still in the planning stages, it was expected to be the largest contract of the year.

The media outlet notes that Musk's SpaceX has received almost $20 billion from the government since 2008 to transport astronauts and satellites. Tesla had already received $41.9 million from the government, including for vehicles supplied to some embassies.