Elon Musk is facing backlash after news broke that the Trump administration plans to award him a $400 million contract to provide “armored” Teslas. This deal, which could be the largest U.S. government contract of 2025, has raised eyebrows for several reasons.
The five-year contract was first reported by Drop Site News and has sparked outrage, particularly since Musk is a well-known ally of Donald Trump.
Critics argue that the contract could create a serious conflict of interest. Musk, who is involved in both SpaceX and Tesla, has access to federal information that could potentially give him an edge over other contractors. The timing is also concerning—this contract is in the planning stages and expected to be finalized later this year.
Soon after the news broke, the Trump administration attempted to cover up the controversy by updating the government’s procurement website, removing the word “Tesla” and replacing it with the more vague description, “$400 million worth of armored electric vehicles.”
The backlash against Musk is not limited to this contract. His rocket company, SpaceX, continues to rake in millions of dollars in government contracts, even as Musk pushes for cuts in federal spending through his Department of Government Efficiency (DOGE).
Critics are calling out the hypocrisy. Former White House ethics adviser Richard Painter sarcastically commented on X, “This is what they call ‘efficiency?’”
Tristan Snell, a lawyer who previously prosecuted Trump University, expressed frustration, writing, “Musk’s plan: Shut down parts of the govt investigating him. Claim that he’s stopping government spending … Give himself all the money.”
Jared Holt, a researcher at the Institute for Strategic Dialogue, added, “Musk convinced MAGA he’s fighting to save their precious taxpayer dollars. Meanwhile, he’s teed up to win a $400 million contract making armored Tesla cars for the State Department. No talk of cutting that one, oddly enough!”
A New York Times article noted that Trump and Musk are selectively hunting for corruption, rolling back ethical standards for themselves and their allies while making moves like this contract.
Musk responded to questions about potential conflicts of interest during a bizarre press conference on Tuesday, where he appeared alongside Trump and his four-year-old son in the Oval Office.
Musk brushed off concerns, stating, “You have to look at the individual contract.” He also attempted to distance himself, saying, “I’m not the one, you know, filing the contract. It’s people at SpaceX or someone who will be putting the contract.”
Despite his push for cuts to government programs, SpaceX recently secured a $39 million defense contract, adding fuel to the fire.
Attorney and researcher Will Stancil pointed out, “You’ll never believe who is still getting new government contracts while all the contracts at the Department of Education and USAID and other agencies are being nuked from orbit by Musk.” He also shared a screenshot confirming that SpaceX received a $39 million contract from NASA earlier this week.
With controversy continuing to swirl around Musk’s growing influence in the U.S. government, many are questioning whether this $400 million contract for Tesla Cybertrucks is just the beginning.
