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Elon Musk responds to Tesla’s $400m armored EV contract with U.S. govt

Credit: Elon Musk/X

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Tesla CEO Elon Musk has responded to the news that the automaker would be awarded a $400 million contract from the U.S. Department of State to supply the U.S. government with armored electric vehicles.

Yesterday, we reported that according to the U.S. Department of State’s Procurement List for 2025, Tesla was set to win a $400 million contract to supply the government with armored EVs — most ideally, the Cybertruck would be used.

Tesla projected to win $400M Dept. of State contract for armored EVs

The expenditure was listed in the public list and was added by the previous White House as former President Joe Biden was still in office when Tesla was added to the list.

The list does not guarantee that a contract will be awarded, but it does show the Department of State’s “anticipated contract” offerings.

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In a short 20 hours since the story was reported, a lot has changed.

First, the Department of State updated the list to remove Tesla’s name from the line where it listed the award, meaning it was either a mistake or a response to potential pushback the public might have.

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Considering Musk’s position at the post of the Department of Government Efficiency (DOGE), it is understandable that some might have a problem with the contract if it were to be awarded.

Secondly, Musk has responded to claims that the contract was intended on being awarded to Tesla, as he said:

“I’m pretty sure Tesla isn’t getting $400m. No one mentioned it to me, at least.”

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There are still plans to launch a government fleet of both armored and plain EVs. Who will win those contracts and be awarded the opportunity to provide them is still up in the air.

Tesla is in a prime position to win those contracts because of its focus on domestic manufacturing and sourcing. In the U.S., Tesla’s Model Y was the most American vehicle, the Cars.com study showed. The Model S was fourth, the Model X was ninth, and the Model 3 was 21st.

The Cybertruck was disqualified from the list due to its gross weight.

Tesla also has the production capacity and a proven track record of fulfilling it, something else that will be a necessity with President Trump in the White House.

Other carmakers could potentially be in the running, but they will need to show their ability to handle manufacturing the fleet that the government could ultimately buy.

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Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Tesla CEO Elon Musk sends final warning to Bill Gates over short position

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said.

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bill gates elon musk

Tesla CEO Elon Musk sent a final warning to former Microsoft CEO Bill Gates over his short position, which he confirmed he held to Musk directly several years ago.

Gates has been a skeptic of Tesla for some time, but he has also tried to work with Musk on philanthropic opportunities several years ago, which was coincidentally when he admitted to the company’s frontman that he held a short position.

Musk was, in turn, “super mean” to Gates, according to Walter Isaacson’s biography about the Tesla CEO. Gates had put $500 million against Tesla, shorting the stock and hoping to profit from its failure.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

A short position essentially means Gates is betting Tesla shares will go down, which would make him money. However, shares have gone up over six percent this year and increased nearly 150 percent over the past five years.

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At the recent Annual Shareholder Meeting, Musk made many claims about Tesla’s future projects and how they could manage to disrupt various industries. He also recently had a massive $1 trillion compensation package approved, which will be awarded in twelve tranches, all of which combine a company valuation goal and an individual goal related to a product.

Musk was able to complete his last approved pay package, but it was not awarded due to a ruling by a Delaware Chancery Court. Nevertheless, his track record of proving growth for Tesla shareholders is excellent, and investors are obviously very encouraged by his capabilities as a CEO, considering 76.6 percent of shareholders voted to approve his new compensation.

After it was revealed that the Gates Foundation dumped 65 percent of its Microsoft position for nearly $9 billion, Musk had one final message for him: drop your Tesla short position soon, or else.

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Musk’s rivalry with Gates is mostly founded on the Tesla CEO’s discontent with the former Microsoft frontman’s short position. However, Musk might have a bit of a soft spot for Gates, considering he is giving him a warning of what is potentially to come. If he really wanted to do some damage to Gates, he would not give him any heads-up at all.

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Elon Musk

Elon Musk debunks report claiming xAI raised $15 billion in funding round

xAI also responded with what appeared to be an automated reply, stating, “Legacy Media Lies.”

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Credit: xAI

Elon Musk has debunked a report claiming his AI startup xAI had raised $15 billion from a funding round. Reports of the alleged funding round were initially reported by CNBC, which cited sources reportedly familiar with the matter.

CNBC’s report

The CNBC story cited unnamed sources that claimed that the new capital injection would help fund GPUs that xAI needs to train its large language model, Grok. The news outlet noted that following the funding round, xAI was valued at $200 billion. 

Artificial intelligence startups have been raising funds from investors as of late. OpenAI raised $6.6 billion in October, valuing the startup at a staggering $500 billion. Reuters also reported last month that OpenAI was preparing for an IPO with a valuation of $1 trillion. Elon Musk’s xAI is looking to catch up and disrupt OpenAI, as well as its large language model, ChatGPT, which has become ubiquitous.

Elon Musk and xAI’s responses

In his response on X, Elon Musk simply stated that the CNBC story was “false.” He did not, however, explain if the whole premise of the publication’s article was fallacious, or if only parts of it were inaccurate. 

Amusingly enough, xAI also issued a response when asked about the matter by Reuters, which also reported on the story. The artificial intelligence startup responded with what appeared to be an automated reply, which read, “Legacy Media Lies.”

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xAI, founded in July 2023 as an alternative to OpenAI and Anthropic, has aggressively built out infrastructure to support its flagship products, including Grok and its recently launched Grokipedia platform. The company is developing its Colossus supercomputer in Memphis, which is heralded as one of the world’s largest supercomputer clusters.

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Elon Musk hints at when Tesla can fix this FSD complaint with v14

Tesla has worked on resolving the issue and has worked on it with subsequent rollouts, but it has only improved slightly. The company has mentioned that it is working to fix it completely, but it seems the next big Software Update to actually resolve the issue altogether will likely be 14.2.

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Credit: Tesla

Tesla CEO Elon Musk hinted at when the company will resolve a major complaint with the Full Self-Driving suite. This particular issue has been persistent and a common complaint within the v14 suite.

Tesla has had its v14 FSD rollout deployed for over a month, and its earliest iterations featured a vast majority of improvements from the past versions. However, one common complaint has continued to be mentioned: stuttering and hesitancy.

Tesla Full Self-Driving’s biggest improvements from v13 to v14

Most commonly, FSD users have experienced this at intersections when the Tesla is at a complete stop. The vehicle will inch forward, contemplate proceeding, and then stutter pretty significantly before ultimately moving forward.

Tesla has worked on resolving the issue and has worked on it with subsequent rollouts, but it has only improved slightly. The company has mentioned that it is working to fix it completely, but it seems the next big Software Update to actually resolve the issue altogether will likely be 14.2.

Musk confirmed that on Wednesday:

When will v14.2 rollout? It’s likely a month or more away. Currently, Tesla is rolling out v14.1.7, which is the latest version and features some minor improvements to Hardware 4 vehicles.

These cars are currently on v14.1.4, but are not receiving v14.1.5 or v14.1.6, as both of those seemed to be internal releases to company employees.

The stuttering issue has been a main complaint of many FSD users, and it is something that is being addressed. Musk’s confirmation that the suite is likely to receive a fix for this issue with the next major FSD release is a sign of good things to come, but we’re hopeful it comes sooner rather than later.

Overall, v14 has been an excellent improvement from v13 with the addition of the additional Speed Profiles of Mad Max and Sloth, as well as new Arrival Options that give the driver an opportunity to let the car park in a suitable location upon arriving at the destination.

@teslarati 🚨🚨 Tesla Full Self-Driving and Yap is the best driving experience #tesla #fsd #yapping ♬ I Run – HAVEN.

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