Vivek Ramaswamy, a prominent figure in the incoming Department of Government Efficiency (DOGE), has voiced strong criticism against the U.S. Department of Energy’s recent approval of a $6.6 billion loan to electric vehicle (EV) manufacturer Rivian. The loan, which is intended to support the construction of a new factory in Georgia, is seen by Ramaswamy as both economically inefficient and politically charged, particularly aimed at Tesla CEO Elon Musk.
A Costly Investment in Jobs and EVs
The loan is part of the Advanced Technology Vehicles Manufacturing (ATVM) program, designed to bolster EV production in the U.S. by providing financial assistance to companies developing zero-emission vehicles. The Rivian plant is expected to create around 7,500 jobs, but Ramaswamy has questioned the economic rationale, calculating the cost per job at nearly $880,000. He labeled this expenditure “insane” and suggested it was more of a political maneuver than an economic necessity.
Political Context and Allegations
Ramaswamy’s criticisms highlight concerns about the Biden administration’s spending priorities. He argued that the loan represents a “political shot across the bow” at Musk and Tesla, given Musk’s frequent criticism of the current administration. The timing of the loan announcement also aligns with broader policy goals under the Inflation Reduction Act, which Ramaswamy and other critics argue expands unnecessary government spending.
Broader Implications for the EV Industry
This criticism of Rivian’s loan comes on the heels of Ramaswamy also flagging a $7.5 billion loan to Stellantis, indicating a broader skepticism toward government-backed loans in the EV sector. The Biden administration, however, defends these loans as essential to meeting its climate goals, aiming for 50% of new car sales to be zero-emission by 2030.
Keywords:
- Vivek Ramaswamy Rivian loan
- $6.6 billion Rivian loan criticism
- Advanced Technology Vehicles Manufacturing program
- EV manufacturing loans
- Biden administration EV policy
