Key Points
- Startup Slate Auto is launching a small, “bare-bones” electric pickup for under $20,000.
- That price tag relied on a $7,500 federal tax credit that is now set to expire.
- Slate is betting on affordability in a market where the average new vehicle costs over $45,000.
- The company is keeping costs down with a super-simple design and by making features like a stereo optional extras.
Startup Slate Auto is garnering significant attention for its compact, boxy electric pickup, which comes with a surprisingly affordable price tag: under $20,000. But that price relied on a $7,500 federal tax credit that is set to expire, leaving many potential buyers wondering if the truck will still fit their budget.
Michigan-based Slate has already racked up over 100,000 reservations and raised $700 million from investors, including Amazon founder Jeff Bezos. The company is betting it can succeed by offering something that’s becoming rare in the U.S. car market: affordability. The average new vehicle now costs over $45,000.
Slate’s strategy is to go “bare-bones.” The two-seat pickup is smaller than a Honda Civic and comes with a very sparse interior. Even a stereo and power windows will cost extra. By simplifying the design to just 500 parts and skipping an expensive paint shop (the truck comes in gray with an optional vinyl wrap), the company is working hard to keep costs down.
However, Slate is launching into a tough market. U.S. sales growth for electric vehicles has cooled, and the loss of the tax credit will further hurt demand. Most EV makers are still losing money because batteries are expensive.
Slate’s CEO says the company can absorb the loss of the tax credit and still undercut competitors. With major automakers like Ford watching and calling the idea “super interesting,” Slate is taking a leap of faith that Americans are ready for a no-frills, affordable electric truck.
