Vivek Ramaswamy criticizes Biden's electric vehicle loans amid Stellantis turmoil

In the United States, Vivek Ramaswamy, who was recently appointed co-lead of the Department of Government Efficiency, has ramped up his criticisms regarding the Biden administration's electric vehicle loan practices. His focus has been on a recent announcement concerning a substantial $7.5 billion loan allocated to StarPlus Energy, a collaborative venture involving Stellantis N.V. This scrutiny comes shortly after he questioned a $6.6 billion loan intended for Rivian Automotive, a competitor to Tesla. Ramaswamy has openly criticized what he labels as President Biden's 'midnight spending spree,' calling for these loans to be rescinded. The timing of Ramaswamy’s remarks is significant, particularly as Stellantis faces challenges, including a significant revenue decline of 27% reported at 33 billion euros in the third quarter, following the unexpected resignation of CEO Carlos Tavares over differences with the board. Ramaswamy has highlighted the Advanced Technology Vehicles Manufacturing (ATVM) loan program as a misallocation of resources, noting that the Government Accountability Office had previously recommended its termination in 2014 due to overlaps in funding sources. Ramaswamy criticized the Biden administration for extending the program, accusing it of wasting approximately $55 billion under the Inflation Reduction Act. Meanwhile, Rivian, which is also under scrutiny for its financial performance, has yet to achieve profitability but aims to report its first gross profit in the ongoing quarter. The stress within the electric vehicle industry is evident, especially in light of proposed tariffs on imports from Mexico that could further impact Stellantis. While the Department of Energy defends its loan initiative by citing Tesla's successful loan repayment in 2010 as a model of the program's efficacy, Ramaswamy has insinuated that the recent financial aids may carry political motivations linked to ongoing tensions between the Biden administration and Elon Musk. The developments have raised questions about the future of electric vehicles in the U.S., particularly under a government that is trying to promote clean energy. Ramaswamy has pledged to closely evaluate these late-stage financial transactions when he takes office, inserting himself into a critical dialogue regarding the motivations and implications of government lending in the electric vehicle sector. As he prepares for his role alongside Musk following the inauguration of President-elect Donald Trump on January 20, the scrutiny of these loans may shape the landscape of funding and support for electric vehicle initiatives moving forward.