Rivian Secures $6.6 Billion Loan, Sparks Criticism from DOGE Leader

The Biden administration has approved a $6.6 billion loan to Rivian, a Tesla rival, to help the company complete construction of an electric vehicle factory in Georgia. This move has drawn criticism from Vivek Ramaswamy, who is set to lead the "Department of Government Efficiency" (DOGE) alongside Elon Musk in the incoming Trump administration.

Ramaswamy argues that the loan is an unnecessary expenditure, costing taxpayers $880,000 per job created. He believes the loan is a "political shot across the bow" at Elon Musk and Tesla.

The Department of Energy, however, defends the loan as part of the Advanced Technology Vehicles Manufacturing Loan Program, which aims to strengthen America's position as a global automotive leader. They point to the program's previous success, including a $465 million loan to Tesla in 2010, which was repaid early.

Musk and Ramaswamy have pledged to cut $2 trillion in government spending and reduce the federal workforce through DOGE. This includes scrutinizing grants awarded under the CHIPS Act, which aims to boost the US microchip industry.

The Biden administration has actively promoted electric vehicle adoption through various policies, including tax incentives and grants for charging infrastructure. However, much of this spending is expected to be rolled back under the Trump administration, including the $7,500 tax credit for new EVs. This could potentially lead to a decline in EV sales in the US.

The Department of Energy did not respond to a request for comment from Business Insider.