Vivek Ramaswamy criticized the Biden administration’s nearly $6 billion federal loan expected for Rivian’s electric vehicle manufacturing plant, labeling it as a “political shot” at Tesla boss and billionaire Elon Musk.
The Department of Energy’s Loan Programs Office said the loan designed to jump-start Rivian’s electric vehicle manufacturing facility in northeast Georgia is still subject to final conditions and approval.
“One ‘justification’ is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane,” wrote Ramaswamy Tuesday in a post on X. “This smells more like a political shot across the bow at Elon Musk and Tesla.”
Rivian declined a request to comment.
Musk emerged as a key donor and political operative for President-elect Donald Trump during the presidential contest against Vice President Kamala Harris. Since the election, Trump has tapped Musk and Ramaswamy for a role in an effort to slash the federal government.
Musk’s Tesla was granted a loan from the Department of Energy program in 2010.
In March, California-based Rivian paused the Georgia plant’s construction indefinitely to cut costs and shifted its production of its next model, the R2 crossover, to its Illinois plant. At the time, Rivian said it still planned to expand production of the R2 in the new Georgia factory and build at least two other future models, the R3 and R3x.
But it was unclear when the project would restart.
In late 2021, Gov. Brian Kemp recruited Rivian to build the $5 billion factory, where the upstart EV company said it would create 7,500 jobs. At the time, it ranked as Georgia’s largest economic development project, since surpassed by the Hyundai Motor Group’s EV factory near Savannah.
Credit: John Bazemore/AP
Credit: John Bazemore/AP
But the Rivian project stalled as the electric vehicle company struggled to reach profitability.
About two months ago, before the election, Rivian’s application for the loan became public, though it was likely in progress for months before then.
Rivian said the Georgia factory will be 9 million square feet and able to produce up to 400,000 vehicles by 2032.
Credit: TNS
Credit: TNS
The R2 is estimated to start at $42,000, according to the loan programs office, which would make the model eligible for a $7,500 tax break through the Inflation Reduction Act. The bill is part of a push from Democrats and President Joe Biden to incentivize EVs. Currently, most Rivian models do not qualify for the tax credit.
Trump selected Ramaswamy and Musk to run the unofficial federal agency, the Department of Government Efficiency, or DOGE, during Trump’s second term.
The duo said they aim to cut up to $2 trillion in government spending and slash excess regulations.
Trump has criticized federal incentives to bring EV manufacturing to the U.S. and promised to roll some of them back during his second term.
Cox Enterprises, which owns The Atlanta Journal-Constitution, also owns about a 3% stake in Rivian.
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