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The case is a reminder of how much of Musk’s wealth comes from taxpayers. His companies have government contracts worth hundreds of millions of dollars a year.

The State Department updated its 2025 procurement forecast after the line item was publicly questioned about potential conflict of interest.

While investors hoped Musk's association with Trump would boost the company, sales and stock price are down since inauguration. Some industry analysts say Musk's political involvement is to blame, others that it's thanks to Tesla falling behind on new model releases.

A State Department spokesperson told Forbes the department has “no current plans” to move forward with the potential contract, which was initiated under the Biden administration.