The State Department had been in talks with Elon Musk's Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400-million purchase.

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 U.S. government has not awarded Tesla a contract to produce “armored” electric cars, a State Department spokesperson said Thursday, clarifying a budget document that appeared to detail the agency’s plan to spend $400 million on vehicles from Elon Musk’s automotive giant.