Rivian has secured a significant $6.6 billion loan from the Department of Energy to restart the construction of an electric vehicle factory in Georgia, a move the government says will create 7,500 jobs by 2030. However, the deal has sparked criticism, particularly from Vivek Ramaswamy, who is slated to lead the Department of Government Efficiency DOGE under a potential second Trump administration.
Ramaswamy, who made his criticism on X formerly Twitter, questioned the cost-effectiveness of the loan, stating that the $880,000 per job created was excessive and suggested it was a political maneuver targeting Elon Musk and Tesla.
A spokesperson from the Department of Energy defended the loan, highlighting that the Advanced Technology Vehicles Manufacturing Loan Program has successfully supported American automotive companies, including Tesla, which repaid a $465 million loan early in 2010.
This program aims to solidify America’s position as a leader in the global automotive industry.
Meanwhile, Ramaswamy and Musk, who have both emphasized reducing government spending, are expected to cut federal expenditures and reform regulatory agencies if DOGE is established.
They also aim to reduce government regulations, a stance that has raised concerns regarding the potential impact on agencies that regulate Musk’s companies.
Rivian’s loan is part of broader efforts by the Biden administration to promote electric vehicle adoption, including tax incentives for EV buyers and federal grants for charging infrastructure.
However, with a potential change in administration, these policies, such as the $7,500 tax credit for EVs, may be rolled back under a second Trump presidency, potentially affecting the future of EV sales in the U.S.
Ramaswamy also signaled that DOGE would scrutinize other government grants, criticizing what he described as “11th-hour gambits” before the end of the Biden administration.
Meanwhile, the Department of Energy has not responded to requests for comment on Ramaswamy’s remarks.