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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

Elon Musk teases Tesla’s “most epic demo” by end of year

Musk posted his update on social media platform X.

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Credit: @Teslaconomics/X

Tesla CEO Elon Musk has teased what could very well be one of the electric vehicle maker’s most important events. As per the CEO, Tesla will be holding its most epic demo yet by the end of the year.

Musk posted his update on social media platform X. 

Tesla’s most epic demo

Musk has been active on X this weekend, and on Sunday night, the CEO mentioned that he just left the Tesla Design Studio in Hawthorne, California. He seemed impressed with what he saw at the site, as he noted that the company will hold an impressive demonstration at the end of the year.

“Just left the Tesla design studio. Most epic demo ever by one of year. Ever, Musk wrote in his post

Musk’s post was received with much anticipation from the electric vehicle community, many of whom speculated that the company may finally be ready to take the wraps off the production version of a long-awaited flagship product

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Possible new flagship?

When Tesla unveiled the Semi in late 2018, the company also unveiled the next-generation Roadster, which was designed to be the company’s halo vehicle. The Semi has since entered limited production and is now being used by both Tesla and select clients, but the Roadster remains under wraps. Considering that Musk mentioned the Tesla Design Studio in his recent post, some Tesla fans are speculating that the company may finally be unveiling the production version of the next-generation Roadster. 

Tesla, after all, has been overtaken in the raw EV power, range, and speed game by competitors, with vehicles like the Lucid Air Sapphire and the Xiaomi SU7 Ultra beating the company’s fastest car today, the Model S Plaid, in raw numbers.  Tesla could then use the Roadster to reestablish itself as the leader of the electric vehicle pack, raw numbers and tech or otherwise.

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Elon Musk

Grok coming to Tesla vehicles next week “at the latest:” Elon Musk

Grok’s rollout to Tesla vehicles is expected to begin next week at the latest.

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Credit: Tesla China

Elon Musk announced on Thursday that Grok, the large language model developed by his startup xAI, will soon be available in Tesla vehicles. Grok’s rollout to Tesla vehicles is expected to begin next week at the latest, further deepening the ties between the two Elon Musk-led companies.

Tesla–xAI synergy

Musk confirmed the news on X shortly after livestreaming the release of Grok 4, xAI’s latest large language model. “Grok is coming to Tesla vehicles very soon. Next week at the latest,” Musk wrote in a post on social media platform X.

During the livestream, Musk and several members of the xAI team highlighted several upgrades to Grok 4’s voice capabilities and performance metrics, positioning the LLM as competitive with top-tier models from OpenAI and Google.

The in-vehicle integration of Grok marks a new chapter in Tesla’s AI development. While Tesla has long relied on in-house systems for autonomous driving and energy optimization, Grok’s integration would introduce conversational AI directly into its vehicles’ user experience. This integration could potentially improve customer interaction inside Tesla vehicles.

xAI and Tesla’s collaborative footprint

Grok’s upcoming rollout to Tesla vehicles adds to a growing business relationship between Tesla and xAI. Earlier this year, Tesla disclosed that it generated $198.3 million in revenue from commercial, consulting, and support agreements with xAI, as noted in a report from Bloomberg News. A large portion of that amount, however, came from the sale of Megapack energy storage systems to the artificial intelligence startup.

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In July 2023, Musk polled X users about whether Tesla should invest $5 billion in xAI. While no formal investment has been made so far, 68% of poll participants voted yes, and Musk has since stated that the idea would be discussed with Tesla’s board.

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xAI launches Grok 4 with new $300/month SuperGrok Heavy subscription

xAI also introduced SuperGrok Heavy, which is priced at $300 per month.

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Credit: xAI/X

xAI, the artificial intelligence company founded by Elon Musk, has officially launched its latest flagship models, Grok 4 and Grok 4 Heavy. Alongside the release, the company introduced its most premium subscription tier to date, SuperGrok Heavy, which is priced at $300 per month and targeted at power users and developers.

Grok 4 is designed to compete with top-tier AI models like OpenAI’s ChatGPT and Google’s Gemini. As per xAI, Grok 4 demonstrates frontier-level performance across several benchmark evaluations. 

On Humanity’s Last Exam, an extensive test designed to evaluate general knowledge, Grok 4 scored 25.4% without using external tools, outperforming OpenAI’s o3 (high), which scored 21%, and Gemini 2.5 Pro, which scored 21.6%. 

When equipped with tools, Grok 4 Heavy scored 44.4%, making it the top-performing model in that category. For context, Gemini 2.5 Pro with tools scored 26.9%, as noted in a TechCrunch report.

xAI also highlighted Grok 4 Heavy’s “multi-agent” system, which enables multiple instances of the model to solve a problem in parallel and compare answers, similar to a study group. This collaborative approach is intended to improve both reasoning and accuracy in complex tasks.

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The company also shared results from the ARC-AGI-2 benchmark, where Grok (Thinking) achieved new state of the art (SOTA) score on the test with 15.9%. As per Arc Prize in a post on X, this score is “nearly double(s) the previous commercial SOTA and tops the current Kaggle competition SOTA.”

The $300/month SuperGrok Heavy plan grants users early access to Grok 4 Heavy, as well as upcoming product features. Upcoming capabilities that are planned for release in the coming months include an AI coding model in August, a multi-modal agent in September, and a video generation system in October.

Grok 4 and Grok 4 Heavy are available via API as part of xAI’s push to engage developers and enterprise users. The company’s enterprise platform, which launched just two months ago, will also expand via partnerships with cloud hyperscalers to bring Grok models to broader infrastructure environments.

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