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.

Tesla shares moved higher in early Thursday trading, but remained mired in a weeks-long slump, as a top Wall Street analysts suggests the recent bearish moves belie what is still a compelling near-term story for the world's biggest EV maker.

Shares of Tesla have fallen since Trump's inauguration and Musk's efficiency efforts, but EV competition from China is playing a role.