Slate Auto, a Jeff Bezos-backed EV startup, has dropped its promise to sell its electric pickup truck for under $20,000 after federal incentives. The company’s website now states that the vehicle will be priced in the “mid-twenties.”
Background
Slate Auto had previously indicated that its modular pickup truck would start at under $20,000 after federal incentives. This expectation was based on the $7,500 tax credit for new US-built electric cars. However, with the US House of Representatives passing a final version of President Donald Trump’s “Big Beautiful Bill,” which is expected to eliminate the $7,500 tax credit from September, Slate’s pricing strategy has been affected.
Initial Plans and Changes
When Slate unveiled its utilitarian truck in April, it announced a price of $25,000. The company had been counting on federal incentives to bring the price down to under $20,000. Internet Archive screenshots viewed by Business Insider showed that Slate’s website featured the “under $20,000” expected price as recently as Wednesday, before being changed.
Implications
The change in pricing comes at a time when affordable EV options are limited, hindering adoption in the US. Slate Auto’s CEO had previously stated that the company aimed to fill this gap. Despite the higher price, the startup has seen significant interest in its vehicle, with 100,000 refundable reservations made in the first three weeks of sales.
Customization and Future Plans
Although the base version of the truck, set to be built in Indiana with deliveries beginning in 2026, will lack features like screens, radios, or power windows, Slate says it will be heavily customizable. Buyers will be able to purchase over 100 accessories, including personalized wraps and an “SUV kit” that transforms the Slate truck into a five-person people carrier.
Industry Context
The average price of an EV in the US is currently almost $10,000 more than its combustion-engine equivalent. Experts warn that scrapping the $7,500 tax credit will make electric cars even more unaffordable. A Harvard University Salata Institute report found that removing the tax credit could result in a 15% reduction in expected EV sales by 2030 and an additional 20 million metric tons of CO2 emissions over the same period.
