Threat to claw back Rivian loan sparks criticism of Musk's conflict of interest

Vivek Ramaswamy, the incoming co-chair of Donald Trump's commission aimed at reducing government spending, has expressed intentions to scrutinize and potentially claw back a $6.6 billion loan to Rivian, an electric vehicle startup and competitor to Tesla, co-chaired by Elon Musk. Ramaswamy criticized the Biden administration's recent financial commitments, suggesting they are politically motivated and detrimental to taxpayers. He indicated that the Rivian loan, which is intended to support a new manufacturing plant in Georgia, is among several last-minute actions that warrant special attention. However, the commission, known as the Department of Government Efficiency (DOGE), lacks statutory authority to enforce such clawbacks, as only Congress can rescind previously approved funds. Ramaswamy's comments have raised concerns about potential conflicts of interest, given Musk's ties to the commission. Industry insiders remain skeptical about the feasibility of Ramaswamy's threats, noting that the loan process has been in development for two years and is designed to create jobs. The Biden administration continues to push for the disbursement of funds from various infrastructure and clean energy initiatives, despite the impending transition to a new administration. The situation highlights the ongoing tensions surrounding federal spending and the implications for clean energy investments.

- Ramaswamy aims to review and potentially claw back a loan to Rivian, a competitor to Tesla.

- The DOGE lacks the authority to enforce clawbacks, as only Congress can rescind funds.

- Concerns arise over conflicts of interest due to Ramaswamy's ties to Musk.

- The Rivian loan is intended to create jobs and has been in development for two years.

- The Biden administration is focused on disbursing funds for clean energy initiatives before the transition.