The US government’s Department of Government Efficiency (DOGE) will examine multibillion-dollar federal loans to rival companies of Tesla, amid concerns that CEO Elon Musk may use his role to interfere with competitors and regulators.
Vivek Ramaswamy, a cost-cutting advisor on the incoming Trump administration’s agenda, has criticized the $7.5 billion loan to Stellantis for being “illegitimate” and called for its rescission. He also expressed concerns over a $6.6 billion loan to support Rivian’s electric-vehicle plant in Georgia.
DOGE will scrutinize these loans starting January 20, following Ramaswamy’s threat to do so. The loans are part of the Biden administration’s efforts to support battery factories in Indiana and Georgia, which are being built by Stellantis and Samsung.
The move comes as Musk has signaled his support for cutting a $7,500 tax incentive for new electric vehicles, potentially harming Tesla’s rivals in the US market. Ramaswamy and Musk aim to cut about $2 trillion in government spending and slash the federal workforce through DOGE.
The loans support up to 2,800 jobs once operational and will hire an additional 3,200 workers during construction. The Department of Energy stated that these investments would bring lower energy costs and new economic opportunities for states, communities, and private sector partners.
Source: https://www.businessinsider.com/ramaswamy-doge-investigate-federal-loans-tesla-rivals-elon-musk-2024-12