Key Takeaways

Tesla shares rose Thursday morning after a U.S. State Department forecast was reported Wednesday afternoon, revealing that the electric vehicle maker is a possible choice for an estimated $400 million contract for armored electric vehicles.

The line item for "Armored Tesla," which was changed to "Armored Electric Vehicles" late Wednesday, appears to have been added to the State Department's procurement forecast in December, between U.S. President Donald Trump's election win and inauguration. The inclusion of Tesla ( TSLA ) in the spending forecast was first reported by independent outlet Drop Site on Wednesday.

The New York Times reported on Wednesday that some of that $400 million would go to Tesla for its vehicles, while some would also go to another third party contractor that would add security features like bulletproof glass.

A State Department spokesperson told Investopedia that no contract has been awarded for armored EVs, and said the request was made by the Biden administration to ask EV makers if they would be interested in making armored vehicles for the government. The process that would open bidding to EV makers is currently on hold, so the line item should have listed a generic term rather than a specific company.

Musk Accuses MSNBC Host of Lying About Line Item

In a social media post late Wednesday, Musk accused MSNBC host Rachel Maddow of lying and misrepresenting the line item as a benefit for his current work with the administration, quoting another user who noted the fact that it was added to the procurement forecast before Trump was in office.

The Times has also reported on the ways Musk's other companies are benefiting from his proximity to the Trump administration and role in reviewing government spending, including agencies that award billions in government contracts, as well as agencies that were investigating Musk.

Around the same area in the procurement document, the Department also includes allocations for other armored vehicles, with German automaker BMW the only other specific company named. Those other three contracts are worth a combined $130 million, while the line item that previously said Tesla is projected to be worth $400 million. All four are expected to be awarded in the fourth quarter of 2025.