Vivek Ramaswamy who has been appointed as the co-czar for government efficiency by Donald Trump has expressed his intention to examine a loan offered to Rivian, an electric vehicles manufacturer that competes with Tesla by the Biden administration.
Ramaswamy is the founder of several biotech companies which collectively is referred to as th’Vants’. He is all set to lead the quasi-federal Department of Government Efficiency (DOGE) once Trump takes over office. Together with the CEO of Tesla and DOGE co-leader, they both aim to significantly reduce the size of the U.S. government by cutting regulations, eliminating waste and terminating federal positions. The target of these measures is to reduce the budget by $2 trillion.
They have already identified funding which has been allocated to two entities, the Corporation for Public Broadcasting and Planned Parenthood. These firms are frequently criticized by Republicans and are their initial targets for cuts and the examination may also be extended to Rivian.
Ramaswamy in a remark made on Thursday said that Biden is giving $6.6 billion to EV manufacturer Rivian to work on their plant in Georgia which has already been put on hold. According to him, this funding is like a political move aimed at Tesla and Elon Musk.
The loan is intended to support the construction of the second factory for Rivian, where the company has plans to produce an R2 family of mid-size electric vehicles which will be placed below R1T pickup truck and R1S SUV. However, in March construction got postponed as the founder and CEO of Rivian, RJ Scaringe was looking forward to conserving financial resources.
These are grounds on which it is interpreted that this loan is a politically motivated loan providing financial help to the struggling competitor to Tesla that could undermine Musk who played a major role in the victory of Donald Trump and Democratic losses across all government branches.
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