Donald Trump’s newly appointed co-chair of the Department of Government Efficiency (DOGE), Vivek Ramaswamy, has expressed plans to examine a $6.6 billion loan granted by the Biden administration to Rivian, an electric vehicle (EV) manufacturer and Tesla competitor.
Ramaswamy, a biotech entrepreneur known for his “Vant” companies, will assume his DOGE role alongside Tesla CEO Elon Musk upon Trump’s inauguration. The pair has been tasked with aggressively shrinking the federal government by cutting regulations, reducing the federal workforce, and eliminating inefficiencies, with a target of reducing the budget by $2 trillion.
Their initial targets include funding for the Corporation for Public Broadcasting and Planned Parenthood, long-standing Republican priorities. Now, Rivian’s loan could also come under scrutiny.
“Biden is giving $6.6 billion to Rivian for a Georgia plant they’ve already paused construction on,” Ramaswamy posted Thursday. “The justification is 7,500 jobs, but that breaks down to $880,000 per job—an absurd figure. This feels more like a political attack on Elon Musk and Tesla.”
The loan in question would finance Rivian’s second factory, intended to produce its R2 line of midsize electric vehicles, complementing its existing R1T pickup and R1S SUV. However, Rivian’s CEO, RJ Scaringe, delayed construction earlier this year to preserve cash.
The decision to loan funds to Rivian has sparked speculation of political motivations. Boosting a struggling Tesla competitor could undermine Musk, who was instrumental in unseating Democratic leadership during recent elections. This theory gains traction given California’s decision to exclude Tesla from a new state initiative to expand EV subsidies.
Tesla’s own history with federal loans serves as a counterpoint. The company was an early beneficiary of the Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program, repaying its $465 million loan nine years early with interest.
In a statement, the Department of Energy defended the Rivian loan, emphasizing the ATVM program’s role in maintaining America’s leadership in the EV industry. “The 2010 loan to Tesla catalyzed the EV sector. We remain committed to equipping American workers to lead in emerging technologies,” the agency said.
Signed into law in 2008 under President George W. Bush, the ATVM program has faced criticism, particularly following the high-profile failure of Solyndra. Trump previously sought to eliminate ATVM funding in his 2021 fiscal year budget. Fortune has reached out to Rivian and Trump’s transition team for comment on the situation.
