Vivek Ramaswamy, the newly nominated co-lead of the Department of Government Efficiency or DOGE, has intensified his criticism of the President Joe Biden administration's electric vehicle loans, targeting a $7.5 billion loan to StarPlus Energy, a joint venture involving Stellantis N.V. (NYSE:STLA), just days after questioning a $6.6 billion loan to Tesla Inc. (NASDAQ:TSLA) rival Rivian Automotive Inc (NASDAQ:RIVN).
What Happened: "Biden's midnight spending spree is illegitimate & should be rescinded," Ramaswamy wrote on X on Tuesday, pointing to the Department of Energy's latest loan announcement.
The timing is particularly notable as it comes amid leadership turmoil at Stellantis, following CEO Carlos Tavares' abrupt resignation on Monday over "different views" with the board.
Ramaswamy specifically highlighted concerns about the Advanced Technology Vehicles Manufacturing (ATVM) loan program, noting that the Government Accountability Office had recommended its termination in 2014 for being duplicative. "Instead Biden expanded the program, allowing ~$55BN to be squandered under the Inflation Reduction Act," he stated.
Biden's midnight spending spree is illegitimate & should be rescinded. The Department of Energy just announced a staggering $7.5BN loan to StarPlus, a JV that includes Stellantis (whose CEO resigned just yesterday). The money comes from the ATVM loan program, which the GAO called...
— Vivek Ramaswamy (@VivekGRamaswamy) December 3, 2024
Why It Matters: The scrutiny of these loans comes at a critical time for the EV industry. Rivian has yet to achieve profitability, though it aims to generate its first gross profit in the current quarter.
Meanwhile, Stellantis faces its challenges, including a 27% revenue decline to 33 billion euros in the third quarter and potential impacts from proposed tariffs on Mexican imports.
The Department of Energy has defended its loan program, citing Tesla's successful 2010 loan repayment as evidence of the program's effectiveness.
However, Ramaswamy suggests potential political motivations behind the recent loans, particularly given the tensions between the Biden administration and Tesla CEO Elon Musk.
This was recently highlighted in California, where Governor Gavin Newsom proposed excluding Tesla from state EV incentives despite it being the only EV manufacturer in the state.
Ramaswamy pledged to "carefully scrutinize every one of these questionable 11th-hour transactions" when he assumes his role alongside Musk following President-elect Donald Trump's inauguration on Jan. 20.
