Tesla Removed From $400M Federal Contract Amid Musk Scrutiny

The document was updated, removing reference to Tesla and changing the item to "Armored Electric Vehicles" instead.

The document, which was modified at 9:12 p.m. on February 12, lists the revised "Armored Electric Vehicles" procurement under the NAICS Code 561613 for "Armored Car Services." The document remains unchanged in all other 319 line items.

The office issues annual procurement forecasts in accordance with the Business Opportunity Development Reform Act of 1988, which "requires agencies to compile and make available projections of contracting opportunities that small and disadvantaged businesses may be able to perform." This is intended to provide "small businesses, small disadvantaged businesses, women-owned small businesses, HUBZone small businesses, and service-disabled veteran-owned small businesses" with opportunities to compete for direct government contracts or subcontracting opportunities.

Elon Musk, who heads the newly formed Department of Government Efficiency (DOGE) and also owns and runs several companies with significant stakes in federal regulations and government contracts, including Tesla and SpaceX, addressed concerns about potential conflicts of interest during a White House appearance on Tuesday. "Transparency is what builds trust," he said, noting that DOGE's activities are publicly available on X, a platform he also owns. "You can see: am I doing something that benefits one of my companies or not? ... I expect to be closely examined."

Trump suggested there would be some oversight of Musk: "If we thought there was a lack of transparency or a conflict of interest," he said in the Oval Office beside Musk, "we would not let him do that segment or look in that area." However, White House Press Secretary Karoline Leavitt previously suggested that the President is okay with Musk taking care of it himself, saying: "If Elon Musk comes across a conflict of interest with the contracts and the funding that DOGE is overseeing, then Elon will excuse himself from those contracts."

The updated forecast was first reported.

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