A $25,000 empty EV truck will be worth it

LOS ANGELES – Electric startup Slate Auto hopes to weather challenging market conditions and avoid the losses its peers are seeing by profitably selling a highly customizable EV that starts at just under $25,000.

Slate CEO Peter Faricy said all of the Michigan-based EVs are supported Amazon founder Jeff Bezos and Los Angeles Dodger controlling owner Mark Walter – will have a good measure. That will lead the company to free cash flow and earnings before taxes, depreciation, and amortization by 2027, he said.

“It’s an aspirational goal,” Faricy told CNBC during an interview at the company’s new studio outside Los Angeles. “No other car company has been able to do that before. So it’s an ambition. It’s going to take a lot of work. Nothing is guaranteed in life, but you have to be ambitious if you want to achieve big things. That’s the big goal we’re shooting for.”

Some recent EV startups have struggled financially. Auto manufacturers such as Lordstown Motors and Fisker Automotive collapsed, and so on Rivian Automotive again Lucid Motors have reported billions of dollars in annual losses and both recently announced layoffs.

Faricy, a former vice president of Amazon Marketplace who was named to lead the automaker in March, said the company can succeed where others have failed because of its simple product, customer-focused business strategy and a toll of about 80,000 vehicles a year.

The break-even point is just over half of the 150,000-unit production capacity the company plans to have at its assembly plant in Warsaw, Indiana. Slate continues to build that facility while producing prototype cars.

“We have a different cost structure and a different business model than other automakers,” he said, pointing to the simplicity of Slate’s vehicle manufacturing process and the ability to customize EVs.

Slate’s flagship product is a two-seat, $24,950 bare-bones electric truck that’s very basic with optional speakers and crank windows. The truck can be converted into a five-seater for an additional $5,000. The cars will have a Slate-estimated EV range of 205 miles, 181 horsepower and 195 pound-feet of torque.

Its performance pales in comparison to more expensive electric vans and SUVs, but it’s on par with similarly priced cars.

The Slate was in stealth mode until the company unveiled its flagship EV in April 2025. Then it said its starting price would be under $20,000, but that included up to $7,500 in federal tax credits that were then available for EV purchases and have since been discontinued.

The startup has raised more than $1.3 billion through three funding rounds, two of which were led by Walter’s TWG Global investment firm after the lead round partnered with Bezos.

Faricy declined to discuss Slate’s capital route but confirmed that the company is continuing to raise funding as it prepares to produce cars for consumers later this year and ramp up production, with deliveries expected in the fourth quarter.

He did not rule out that Slate would go public, but said it may be too early to do so before the company ramps up production next year.

“We will always look at what our options are. Certainly going public will be one thing,” said Faricy, who was recruited to the company by Slate co-founder and Amazon CEO Jeff Wilke. “2027 is probably too close, in my book. I think we’re going to want to make sure we start and grow the business well.”

Slate has received more than 180,000 reservations for its cars and officially opens pre-orders on Wednesday. Reservations required $50 refundable deposits, but orders will come with $300 non-refundable down payments.

Automotive President Chris Barman, who was the company’s second employee and first CEO, said current expectations are for the SUV to represent 60% of sales, despite the pickup being the base model at around $25,000. The original price is about half the cost of a new car sold, according to Cox Automotive data.

Faricy praised Barman for his leadership as a “world-class automotive executive,” and made sure he was there to use his background in consumer retail and the auto industry before Amazon to take the company to its next step.

“Companies have different stages of life, and now we are at the stage as we launch a product where we will enter the next stage of our life,” he said. “I am happy to join because many of the skills I bring are compatible with the existing team.”

When Slate unveiled its car as “the lightest, most affordable, and most customizable car” in April 2025, more than three years had passed since Barman and Eric Keipper, an automotive veteran and Slate’s head of engineering, began mapping out the road map for EV development.

The cars have a composite injection-molded exterior and plenty of customization options. The plan is for every car off the line to be the same to reduce complexity, before adding any features or different covers/tops such as a fastback or squared-off to make it look like a Jeep Wrangler SUV.

Auto executives have tossed around the concept of a modular, stripped-down car as the industry has seen increased connectivity and affordability concerns, but so far the challenges have outweighed the potential, even as companies struggle to keep prices low.

The slate car has no “communication” like a modem or large screens, a small screen for driver information for range, speed and other standard gauges and warnings. Instead of a central infotainment system, drivers can use their personal devices, such as a smartphone or tablet, to navigate and tune.

The exterior of Slate vehicles will not be painted. The company said they are designed to be wrapped in vinyl film, eliminating the need for an expensive paint shop – a major investment for automakers.

Slate offers more than 100 standard wrap colors for less than $500, but customers can choose any color or design imaginable. The car will also be offered with more than 175 accessories, more than 80% of which are priced under $500, including roof racks, stereos and soft covers.

“No matter who you are or what you like in life, you can express that with your SUV or your truck,” said Faricy, who revealed that the Slate car he wants is a metallic black fastback SUV. “I can’t wait to create that car.”

The company continues to build cars by hand, as well as some factory automation, according to Dan Tasiemski, Slate’s head of manufacturing engineering. Slate aims to have the plant running its normal production processes by August, he said.

The Slate, which Tasiemski said builds about three cars a day, still has to go through the required government vehicle certification and certification for things like range, safety and other features.

In addition to the challenging market conditions for EVs, the Slate product is a unicorn — for better or worse.

The car’s modularity is unique and so is its two-door styling. It will be the only truck or SUV sold in the U.S. to offer a special variant other than four-door models.

Ford reports that only 10% of its Bronco SUV models sold last year were two-doors. Many small trucks such as the Ford Maverick and Hyundai Santa Cruz exclusively offer four-door models.

Slate hasn’t ruled out adding four-door models, but is focusing more on two-door vans and SUVs, according to executives.

It’s also a rear-wheel-drive car as opposed to a powerful four-by-four or all-wheel drive.

The slate is expected to compete with the growing segment of small gas and electric trucks. Most notably, Ford is betting its future EVs on a new affordable platform, starting next year with a pickup truck. Stellantis’ Ram brand also plans to launch new compact and midsize trucks in the coming years.

Slate plans to deliver its vehicle directly to customers rather than through franchised dealers, and that brings challenges and opportunities for the company, based on similar experiences from the US EV leader. TeslaRivian and others.

“I think it’s an important part,” Faricy said, adding that he thinks it will lead to lower costs and better control of the customer experience. “We will definitely be a direct-to-consumer company.”