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Last week, the Department of Energy announced a $6.6 billion conditional loan commitment to Rivian, the electric vehicle startup that is a nascent competitor to Tesla, Musk’s $1 trillion car company.
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“Those types of last-minute actions that are taking place in the lame duck merit particularly special scrutiny,” Ramaswamy told 【 - Free Access to Stock Community 】.
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It’s unclear whether Ramaswamy will make good on his promise to claw back that money, or what legal grounds he would use to justify it. Despite its broad mandate of cutting government waste, DOGE has no statutory authority and is essentially a presidential advisory commission that can make recommendations. Only Congress can claw back money it has previously approved.
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For now, industry groups and lobbyists around Washington are in a wait-and-see mode, with some expressing skepticism over how seriously to take Ramaswamy’s threats.
“I would say we’re a few steps from having to even potentially deal with this,” said one auto industry source, asking incredulously, “Is he going to be in the government?”
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In speaking to 【 - Free Access to Stock Community 】, Ramaswamy was cynical about the chances of taxpayers getting their money back and suggested the post-election timing of the loan was political.
“There’s no way that that money will ever get paid back,” Ramaswamy said. “And If you’re seeing an uptick in the rate of expenditures going out the door in response to the election, that suggest politicization, and suggests a differential change in standard, which from the standpoint of protecting the taxpayer, we believe would be inappropriate.”
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“Tesla is the bright, shining example,” said Albert Gore, executive director of the Zero Emission Transportation Association – an EV trade group that represents both Rivian and Tesla. “I think that it would be great to continue supporting that type of growth here in the US.”
Dan Ives of Wedbush Securities says while it is legitimate for DOGE to review last minute loans, singling out federal funds going to a rival company of Musk is not a “one off” and will likely “become the norm.”
“If Musk is your friend, it’s going to be a positive,” said Ives. “If he’s an enemy, it’s going to be a huge negative.”
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Best Mid Cap Stocks in India for Long Term Gains Best Stocks To Buy ✌️【Market Analysis】✌️ Real-time stock and futures data, backed by expert stock market trend predictions, to help you make timely and profitable investment decisions. Though industry sources say they aren’t overly concerned about DOGE’s ability to claw back federal loan guarantees, Ramaswamy’s decision to single out the Rivian loan struck some as concerning.
“If you’re going to claw back money based on the perception it’s going to a competitor of your co-chair, that will end up delegitimizing your place in this whole system,” the auto industry source said.
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“There’s so much room for judgment in whether the terms of the conditional commitment have been satisfied and so much room for judgment to decide whether the financial assumptions underlying the loan guarantee have changed,” she said.
Best Mid Cap Stocks in India for Long Term Gains Best Stocks To Buy ✌️【Market Analysis】✌️ Real-time stock market data, precise predictions, and investment strategies to help you optimize your portfolio and achieve financial success. The Biden White House has spent much of the past year getting money out the door from a series of domestic spending bills the president signed while in office.
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But Trump made the use of impoundment authority – a practice where the executive branch unilaterally refuses to spend money already appropriated by Congress – a cornerstone of his presidential campaign’s pledge to impose fiscal discipline.
“All of the trillions of dollars that are sitting there not yet spent, we will redirect that money for important projects like roads, bridges, dams and we will not allow it to be spent on the meaningless green new scam ideas,” Trump said in his Republican National Convention speech.
Doing so would set up a direct confrontation with lawmakers in both parties, who closely guard their authority over federal spending. It would also almost certainly trigger a high stakes court battle.
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But they may face resistance, particularly when it comes to clean energy money included in the IRA. Even though no Republicans voted for the bill, close to 80% of announced clean energy investments are in Republican districts.
Industry and advocacy groups in the clean energy sector are already reaching out to GOP lawmakers to highlight the benefits – including funding and jobs – that the loan program, as well as the energy tax credits approved in the IRA.
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“We, by the way, plan to get more done by the end of this month. We read the papers, we know that the next four years will bring a lot more uncertainty to federal clean energy policy,” said Podesta. “No one can reverse the momentum that we’ve created together.”
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