### Ramaswamy Questions Federal Loan for Rivian, Calls It a Hit at Elon Musk

Prominent businessman Vivek Ramaswamy recently voiced his concerns over the Biden administration's potential $6 billion loan for Rivian's electric vehicle manufacturing plant, characterizing it as a "political shot" aimed at Tesla’s CEO, Elon Musk. The loan, intended to boost Rivian's EV production capabilities in northeast Georgia, is still pending final conditions and approval by the Department of Energy's Loan Programs Office.

Ramaswamy argued on social media platform X, "One 'justification' is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane. This smells more like a political shot across the bow at Elon Musk and Tesla."

Elon Musk has emerged as a significant influencer in U.S. politics, notably supporting President-elect Donald Trump in his electoral contest against Vice President Kamala Harris. Post-election, both Musk and Ramaswamy have been involved in Trump’s initiative to reduce federal government size, a role informally carried out through the so-called Department of Government Efficiency, or DOGE.

In contrast, Rivian paused indefinitely the construction of their Georgia plant earlier this year to curtail expenses. Despite relocating the production of its new R2 crossover model to Illinois, Rivian maintained plans to eventually expand production in Georgia with future models R3 and R3x. The time frame for this expansion, however, remains uncertain.

Georgia Governor Brian Kemp initially secured Rivian's commitment to the $5 billion factory project in late 2021, which promised to generate 7,500 jobs. This made it Georgia’s largest economic development project until it was overtaken by the Hyundai Motor Group’s EV factory near Savannah.

The financial viability of Rivian’s project faced hurdles as the company struggled to become profitable. The development of Rivian’s Georgia factory resurfaced in the public eye following its application for the federal loan, which likely had been under consideration for several months.

The proposed facility is projected to cover 9 million square feet and produce up to 400,000 vehicles annually by 2032. According to the Department of Energy's Loan Programs Office, the base model R2 is priced at approximately $42,000, making it eligible for a $7,500 tax break under the Inflation Reduction Act. This legislative measure is part of a broader Democratic initiative led by President Joe Biden to incentivize electric vehicles, with Rivian currently having limited models that qualify for these tax credits.

In the current political climate, Trump has been critical of federal incentives meant to bolster EV manufacturing within the United States and has vowed to diminish some of these measures should he secure a second term in office.