Vivek Ramaswamy says DOGE will 'carefully scrutinize' federal loans to Tesla rivals
Michael M. Santiago, Andrew Harnik/Getty Images
- DOGE is set to scrutinize multibillion-dollar federal loans to two Tesla rivals.
- Vivek Ramaswamy said the cost-cutting body would "carefully scrutinize" loans to Stellantis and Rivian.
- There are concerns Musk may use his role to interfere with his companies' rivals, and regulators.
Vivek Ramaswamy said DOGE will investigate a federal loan worth about $7.5 billion to a Tesla rival.
The Biden administration said Monday it would help finance two battery factories in Indiana being built by a joint venture involving Jeep owner Stellantis and Samsung.
The announcement provoked a furious reaction from one of the incoming Trump administration's chief cost-cutters.
Vivek Ramaswamy, who was tapped to lead a "Department of Government Efficiency" (DOGE) alongside Tesla CEO Elon Musk, called the Stellantis loan "illegitimate" and said it should be rescinded.
The former Republican presidential candidate, who has been one of Donald Trump's most vocal supporters, also criticized a $6.6 billion loan to help finance a Rivian EV plant in Georgia announced last week.
"DOGE will carefully scrutinize every one of these questionable 11th-hour transactions, starting on Jan 20," he wrote on X.
Announcing the loan, the Department of Energy said the Stellantis-Samsung factories would support up to 2,800 jobs once operational and hire 3,200 workers during construction.
Ramaswamy's comments will add to fears that Musk, who runs companies including Tesla and SpaceX, could use DOGE to interfere with rivals and regulators.
Rivian and Stellantis, which owns brands including Dodge, Jeep, and Citroen, both compete with Tesla in the US market.
Musk has already signaled his support for cutting the $7,500 tax incentive for new EVs, which is reportedly being considered by the incoming Trump administration.
The Tesla CEO and analysts have both said that scrapping the tax credit would disproportionally affect Tesla's rivals, including legacy automakers such as Ford and General Motors as well as EV startups including Rivian and Lucid.
Musk and Ramaswamy are aiming to cut about $2 trillion in government spending and slash the federal workforce through DOGE, which will not be an official government department.
DOGE and the Department of Energy did not immediately respond to requests for comment from Business Insider.