Enter Slate Auto, a new electric vehicle startup backed by Amazon founder Jeff Bezos, which just introduced its first vehicle. This debut has much of the automotive world positively buzzing. With more than 100,000 reservations against each requiring a $50 refundable deposit, the move was clearly made in the face of intense consumer demand. The financial behemoth’s strategy involves introducing an electric vehicle for a price range that really competes. In addition, they are aiming for a starting price of less than $20,000 with eligibility for a credit of up to $7,500.
As you can see from the design of Slate Auto’s vehicle, simplicity and cost-effectiveness are top priorities. This electric pickup truck’s minimalistic, two-seat, two-door design reflects its very utilitarian roots. It provides an astounding 140 mile range and a maximum speed of 90 mph. Particularly commendable is how the vehicle uses a large amount of “off the shelf” components from manufacturers, keeping the production costs down. The company has additionally previously indicated plans to provide kits to retrofit the pickup with different body styles, like SUVs.
Since then, Slate Auto has made great progress toward its own production capabilities. Headquartered in Chicago, the startup runs a beta production line at an old printing press located in adjacent Warsaw, Indiana. The facility is now full of dozens of prototypes and crash-tested vehicles. Indeed, the 995-mile assembly line has been cruising since last December. It features a dozen or so annotated stations for major subsections like door assemblies, tailgates and front-ends.
The company’s innovative approach extends to its vehicle’s construction methodology. Initially, Slate Auto imagined a design where you could build the vehicle’s frame just like an erector set. This unique approach sought to remove the model’s reliance on a conventional body shop, expediting production efficiency with great design.
Slate Auto proudly displays their commitment to customization on their homepage. From there, customers can choose from 11 categories and more than 160 dealer-installed and ready-to-wear options excluding exterior colors wraps customizable on the vehicle. The vehicle features injected-molded composite exteriors and hand-crank windows. It replaces fancy infotainment systems. Overall, a boon to drivers who like to be more engaged behind the wheel.
“We took the back-to-basics, only-the-essentials approach, and, really, we’re building a completely new category of product,” said Eric Keipper of Slate Auto. This approach is grounded in simplicity, and it speaks to consumers who want the basic functionality without the extra bells and whistles.
As much as the Slate Auto has created a buzz, industry specialists have warned about the real possible market price of the vehicle. Tim Kuniskis commented on the potential for pricing fluctuations based on customizations: “Now, what’s it going to actually transact at in the marketplace… when people start to option them up, it’s not going to be $20,000. It’s going to be $35,000, and by the time you get to $35,000, you’re in midsize truck territory.
Slate Auto is currently concluding a Series C financing round. They’ve come out with guns a-blazing already raising an astounding $700 million in their seed and series A rounds. This new financial backing will further support its efforts to expand production capacity at its Warsaw facility. The startup expects to eventually ramp up to an annual production of 150,000 vehicles when its factory is running at full capacity.
As part of its long-term vision, Slate Auto wants to expand its product offering beyond two-door vehicles. It seems the current platform could support four-door variants if there is market appetite as they would be more attractive.
Chris Barman from Slate Auto remarked on the company’s strategic planning: “We’ve put together a really solid plan, and we’re working to achieve the plan.” He acknowledged the necessity of adaptability in execution: “It doesn’t mean that we follow the plan exactly. We gotta pivot when different information comes, but we understand what we’ve got to do to ultimately get to the goal of having vehicles that meet all of our requirements.”
Of equal importance is the new startup’s focus on sustainability. Industry veteran Karl Brauer highlighted the challenges associated with producing affordable electric vehicles: “Slate is an example of why and how hard it is to produce a cheap EV.” The company’s mission is focused on sustainability in an economically feasible way.