Slate Auto says $24,950 electric truck will be profitable; targets positive cash flow next year

LOS ANGELES — Electric car startup Slate Auto expects to defy difficult market situations and keep away from the losses its friends have seen by profitably promoting a extremely customizable EV that begins at just below $25,000.

Slate CEO Peter Faricy mentioned each car produced by the Michigan-based EV startup — which is backed by Amazon founder Jeff Bezos and Los Angeles Dodgers controlling proprietor Mark Walter — will be gross margin positive. That will lead the corporate to positive free cash flow and earnings earlier than taxes, depreciation, and amortization by 2027, he mentioned.

“It is an bold purpose,” Faricy informed CNBC throughout an interview on the firm’s new design studio exterior of Los Angeles. “No different automotive firm has been ready to try this earlier than. So it is bold. It’ll take quite a lot of work. Nothing’s assured in life, however you need to have bold targets if you wish to obtain huge issues. That is the massive purpose we’re taking pictures for.”

Different latest EV startups have struggled financially. Automakers comparable to Lordstown Motors and Fisker Automotive went bankrupt, whereas Rivian Automotive and Lucid Motors have reported billions of {dollars} in annual losses and each not too long ago introduced layoffs. 

Faricy, former vice chairman of Amazon Market who was appointed to steer the automaker in March, mentioned the corporate can succeed the place others have failed due to its simplistic product, customer-focused enterprise technique and break-even level of roughly 80,000 autos a year.

The break-even level is simply over half of the 150,000-unit manufacturing capability the corporate plans to have at its meeting plant in Warsaw, Indiana. Slate is constant to construct out that facility whereas additionally producing prototype autos.

“We’ve a distinct price construction and a distinct enterprise mannequin than different automakers have,” he mentioned, citing the simplicity of Slate’s car and manufacturing course of in addition to the flexibility to customise the EVs.

Slate’s flagship product is a two-seat, $24,950 bare-bones electric pickup truck that is so primary the audio system are elective and it has crank home windows. The truck can be transformed right into a five-passenger sport utility car for a further $5,000. The autos will characteristic a Slate-estimated EV vary of 205 miles, 181 horsepower and 195 foot-pounds of torque. 

Its efficiency pales in contrast with a lot pricier electric pickups and SUVs however is according to equally priced autos.

Slate was in stealth mode till the corporate revealed its flagship EV in April 2025. It mentioned then that its preliminary beginning worth would be beneath $20,000, however that included as much as $7,500 in federal tax incentives that have been accessible on the time for buying an EV and have since been discontinued.

The startup has raised greater than $1.3 billion in capital by way of three financing rounds, two of which have been led by Walter’s TWG International funding holding firm after a Bezos-affiliated lead spherical. 

Faricy declined to debate Slate’s capital runway however confirmed the corporate is constant to opportunistically increase funding because it prepares to supply autos for shoppers later this year and ramp up manufacturing, with deliveries anticipated through the fourth quarter. 

He did not rule out the opportunity of Slate going public, however mentioned it could probably be too early to try this earlier than the corporate ramps up manufacturing next year.

“We’ll continually check out what our choices are. Definitely going public will be one,” mentioned Faricy, who was recruited to the corporate by Slate co-founder and fellow Amazon government Jeff Wilke. “2027 might be too quickly, in my e book. I believe we’ll need to actually guarantee that we’re launching and scaling the enterprise effectively.”

Slate has acquired greater than 180,000 reservations for its autos and is formally opening up preorders on Wednesday. The reservations required refundable $50 deposits, however the orders will include $300 nonrefundable down funds. 

Slate President of Automobiles Chris Barman, who was the corporate’s second worker and preliminary CEO, mentioned present expectations are for the SUV to signify 60% of gross sales, regardless of the pickup being the bottom mannequin at roughly $25,000. The beginning worth is roughly half the price of a brand new car bought, in line with Cox Automotive information.

Faricy counseled Barman for her management as a “world-class automotive government,” and confirmed he is there to make use of his background in shopper retail and within the automotive business earlier than Amazon to take the corporate to its next step. 

“Firms have completely different life levels, and we’re now on the stage as we launch manufacturing the place we’re type of going into the next section of our life,” he mentioned. “I am thrilled to affix as a result of quite a lot of the talents that I deliver are complementary to the group that exists.”

When Slate revealed its car as “a radically easy, radically reasonably priced, radically personalizable automotive” in April 2025, greater than three years had handed since Barman and Eric Keipper, an auto veteran and Slate’s head of engineering, first developed the street map for the EV’s improvement. 

The autos have injection-molded composite exteriors and a litany of do-it-yourself choices. The plan is for each car coming off the road to be the identical to cut back complexity, earlier than the addition of any options or completely different covers/tops comparable to fastback or squared-off to look just like a Jeep Wrangler SUV.

Auto executives have tossed across the concept for such a modular, stripped-down car because the business has seen an increase of connectivity and affordability considerations, however thus far the challenges have outweighed the potential alternatives, or firms have struggled to maintain costs low. 

Slate’s car doesn’t characteristic any “connectivity” comparable to a modem or massive screens, only a small driver data display screen for vary, pace and different normal gauges and warnings. As an alternative of a middle infotainment system, drivers can use their very own units, comparable to a smartphone or pill, for navigation and music. 

The exteriors of the Slate autos will not be painted. The corporate mentioned they have been engineered to be wrapped with a vinyl movie, eliminating the necessity for a expensive paint store — a large funding for automakers.

Slate is providing greater than 100 normal wrap colours for beneath $500, however clients can also primarily decide any colour or design they’ll think about. The car additionally will launch with greater than 175 equipment, with over 80% of these priced beneath $500, together with roof racks, stereos and lightweight covers.

“Whoever you’re and no matter you want in life, now you can specific that by way of your SUV or by way of your truck,” mentioned Faricy, who added that the Slate car he needs is a metallic black fastback SUV. “I am unable to wait to create that car.”

The corporate continues to construct the autos by hand, together with some manufacturing unit automation, in line with Dan Tasiemski, Slate’s head of producing engineering. Slate is aiming to start working the manufacturing unit by way of its regular manufacturing processes by August, he mentioned. 

Slate, which Tasiemski mentioned is constructing about three autos a day, nonetheless must undergo required federal car validation and certification for issues comparable to vary, security and different features.

Along with difficult market situations for EVs, Slate’s product is a unicorn — for higher or worse. 

The modularity of the car is exclusive and so is its two-door physique model. It will be the one pickup truck or SUV on sale within the U.S. to solely provide such a variant with out additionally providing four-door fashions. 

Ford stories solely 10% of its Bronco SUV fashions bought final year have been two-door variants. Many small pickup vans such because the Ford Maverick and Hyundai Santa Cruz solely provide four-door fashions.

Slate has not dominated out the addition of four-door fashions, however its sole focus is on the two-door pickup and SUVs, in line with executives.

It is also solely a rear-wheel drive car in contrast with four-by-four functionality or all-wheel drive. 

Slate is predicted to compete in opposition to a rising phase of small gas-powered and electric pickup vans. Most notably, Ford has wager its future EVs on a brand new reasonably priced platform, starting next year with a pickup truck. Stellantis’ Ram model additionally plans to launch new compact and midsize pickup vans within the coming years.

Slate plans to ship its car on to clients slightly than by way of franchised sellers, which additionally presents challenges and alternatives for the corporate, based mostly on related experiences from U.S. EV chief Tesla, Rivian and others.

“I believe it is an vital half,” Faricy mentioned, including that he thinks it will result in decrease prices and higher management over the client expertise. “We’re positively going to be a direct-to-consumer firm.”