Vivek Ramaswamy calls Rivian's $6.6 billion federal loan a 'political shot' at Elon Musk
Michael M. Santiago, Andrew Harnik/Getty Images
- The Biden administration is set to loan Rivian $6.6 billion to finish an EV factory in Georgia.
- Vivek Ramaswamy criticized the move as a "political shot across the bow" at fellow DOGE boss Elon Musk.
- President-elect Donald Trump has tapped Musk and Ramaswamy to help cut government spending.
Rivian secured a vital loan from the outgoing Biden administration — and one of the leaders of DOGE isn't happy about it.
The Tesla rival was granted a $6.6 billion loan from the Department of Energy to restart construction of a stalled electric vehicle factory in Georgia, which the government said would create 7,500 jobs by 2030.
Vivek Ramaswamy, who is set to lead the "Department of Government Efficiency" along with Elon Musk in the second Trump administration, criticized the loan in a post on X.
"One 'justification' is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane," wrote Ramaswamy. "This smells more like a political shot across the bow at Elon Musk and Tesla."
A Department of Energy spokesperson said the Advanced Technology Vehicles Manufacturing Loan Program, which the Rivian deal is part of, reinforced America's position as a global automotive powerhouse.
They said the program also loaned $465 million to Tesla in 2010, which the company repaid early, as evidence of its success.
Musk and Ramaswamy have said they aim to cut about $2 trillion in government spending and slash the federal workforce through DOGE, which will not be an official government department.
The pair's mandate to "slash excess regulations" has raised fears that Musk may be tasked with shaking up regulatory agencies that oversee and have frequently clashed with his companies.
The Biden administration has attempted to boost electric vehicle adoption with a series of policies in recent years. They include tax incentives of up to $7,500 for new EVs made in the US, and $7.5 billion in federal grants to build hundreds of thousands of EV chargers by 2030.
Much of that spending is expected to be rolled back under Trump.
The new administration is reportedly set to scrap the $7,500 tax credit, a move that economist Felix Tintelnott told Business Insider could lower EV sales in the US by up to 27% in the short to medium term.
The Biden administration is also attempting to finalize funding for infrastructure and the US microchip industry before its term ends. , The Commerce Department said on Tuesday that Intel will receive about $7.9 billion in federal grants under the CHIPS Act.
Ramaswamy warned that DOGE will attempt to scrutinize these grants too, criticizing them as "11th-hour gambits" in another X post.
The Department of Energy did not respond to a request for comment from Business Insider.