The etymology here is actually really interesting. The term "tank" was an Americanism for a swimming pool once upon a time, and the etymology of that is pretty well-known: it was imported from a Portuguese word meaning "pond" which ultimately came from India [1]. The same source quotes a 1960s usage of the term for "failure" in the sport of Tennis.

The term actually seems to come from a 1920s boxing euphemism [2]: when a boxer is not actually knocked out but voluntarily lays down on the ground, it was called "a dive" for obvious reasons; euphemistically some people called this "going into the tank," since you'd dive into a pool.

How did this start referring to the vehicle? Again, back to [1], there was once a memo "recommending the proposed "caterpillar machine-gun destroyer" machines be entrusted to an organization "which, for secrecy, shall be called the 'Tank Supply Committee,' ..." and the rest is history.

[1] http://www.etymonline.com/index.php?term=tank

[2] http://www.slate.com/articles/news_and_politics/explainer/20...