Detroit-based electric vehicle startup Slate Auto, backed by Jeff Bezos, began accepting preorders for its electric pickup truck last week. The base price for the truck is $24,950.

The Slate electric truck has an estimated range of 205 miles per charge. The base model is a two-seat vehicle that is 14.5 feet long. Its features include hand-crank windows and a smartphone mount on the dashboard, with no stereo, speakers, or ambient lighting. The truck's base model uses standard cruise control instead of adaptive cruise control.

Slate Auto offers additional features, such as 3D-printed accessories, a stereo, a key fob, and an add-on that converts the truck into a five-seat SUV. Customers can also choose vinyl wraps instead of paint for an extra cost. The company plans to use lithium iron phosphate (LFP) battery packs made by Gotion, a US-based subsidiary of a Chinese firm, with manufacturing located in Illinois.

The average transaction price for a new vehicle in the U.S. was $48,402 last year, according to Edmunds analysis. Fewer than 5% of new vehicles sold for $25,000 or less last year, a decrease from nearly 21% in 2019. The average cost of electric cars is $55,000.

Jeff Jablansky, a company spokesman, stated, "The battery pack for a Slate Truck had to meet targets for durability, reliability, and affordability—among other metrics." Jessica Caldwell, executive director of Insights with Edmunds, said, "I don't think they're going for the stripped-down version because the features, amenities, and technologies – those are part of why prices in the US are so inflated, because Americans wanted all the additions."

Congress passed a climate law in 2022 that created a tax credit of up to $7,500 for buyers of new electric vehicles. BloombergNEF predicted that U.S. EV sales will fall by 19 percent this year.

Why It Matters

Slate Auto's entry into the electric vehicle market aims to offer a low-cost option in a segment where average transaction prices for new vehicles and electric cars have been rising. The base model's minimalist design and accessible price point contrast with the trend of increasing features and amenities in new vehicles. The company's reliance on lithium iron phosphate batteries from a US-based subsidiary of a Chinese firm involves aspects of the evolving supply chain for electric vehicle components.

The U.S. electric vehicle market is currently experiencing a predicted sales decline, adding a dynamic context to Slate Auto's launch. The availability of a federal tax credit for new EV buyers could influence consumer interest in lower-priced models.