I think the sleek-looking Slate truck is yet another nail in Tesla’s coffin

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Summary

Slate Auto’s electric truck could revolutionize EV affordability if it can deliver on a sub-$20K pricetag.
Tesla just isn’t prepared to compete at that price level, even if it can solve other problems like Elon Musk.
It’ll be a while before Slate can compete with Tesla’s volume, but it could have another Model T on its hands.

Recently, a company called Slate Auto made waves it announced its first vehicle, a highly customizable electric pickup truck. That announcement might’ve flown under the radar if it weren’t for two things: first, the company is backed by Amazon co-founder Jeff Bezos, and second, you’ll supposedly be able to get one for less than $20,000 (after tax credits) when shipments start in 2026. Even many gas-powered cars start closer to $25,000, let alone electric ones.

It’s hard to ignore the elephant in the room when you mention both EVs and trucks: Tesla. It seems to me that the Slate truck is going to pose yet another serious challenge for the company, assuming Slate can fire on all cylinders, so to speak.

Will anyone use Tesla’s robotaxis when they come to Austin? Probably not

The company has several serious obstacles in its way, even if the tech is perfect.

What’s the big deal about the Slate truck?

Mostly price, but not just

Slate

It’s hard to overstate how important that sub-$20,000 pricetag is, since EV’s have long been unaffordable for the average person. When I leased my first EV — a 2018 Nissan Leaf — I was lured in by the entry trim, which at the time was worth a little under $30,000. That was more than I’d ever spent on a vehicle. Nevertheless, I ended up upgrading to the SV trim, and that was still considered “cheap” by EV standards.

Yes, the average US selling price for a light car in 2024 was $47,700 (per Statista) — but there’s a reason vehicles like the Toyota Camry and Honda Civic remain in the top ten bestsellers. Many Americans don’t make $47,000 a year, and a $30,000 vehicle could cost you $333 per month or more over five years after a $10,000 down payment. The Slate truck has the potential of bringing EVs to people who would have trouble affording any new car.

It’s hard to overstate how important that sub-$20,000 price tag is, since EV’s have long been unaffordable for the average person.

There are, of course, sacrifices involved. The bare-bones model has a meager 150 miles (about 241 kilometers) of range, and less towing capacity than a Ford Maverick. There’s no infotainment system, and its windows are manually operated, something I haven’t seen in decades. It doesn’t even come painted, so if you want to save maximum cash, you’d better like dark gray.

If you do have more money — something Slate is hoping for, naturally — the truck is heavily customizable not just in terms of features, but in design, too. There’s a multitude of decorative options, and you can even convert it into an SUV if you’re more concerned about carrying passengers than cargo. So, while the base configuration is pretty drab, you can upgrade it to something that’s both practical and stylish.

You’ll be able to install some upgrades yourself if you don’t want to pay for Slate to do it for you.

I’m eagerly awaiting the death of the sedan

Deep into the 21st century, it’s a format that doesn’t really make sense anymore.

How is this going to impact Tesla?

A threat with no response

Tesla

One of the most famous pieces of advice from Sun Tzu’s The Art of War is to “avoid what is strong, and strike at what is weak.” Intentionally or not, Slate is striking at Tesla’s weakest point after its CEO, Elon Musk — price.

While Tesla has raced to discount its cars to counteract the growing hatred of Musk, even the cheapest Model 3 configuration is $36,630 after a federal tax credit, and the company has officially abandoned any attempt at producing something under $30,000. Things look even worse if you need something with truck- or SUV-style capacity. The Cybertruck comes out to at least $64,735. At $86,630, a Model X might as well be a personal limo for how many people can justify one.

There’s not much Tesla can do to counteract Slate, even if it ousts Musk immediately.

Simply put, there’s not much Tesla can do to counteract Slate, even if it ousts Musk immediately. It’s just not prepared to compete on price, and it may never be, since its factories and business models are all tailored to supporting mid-range and high-end EVs. Adjusting would take a radical shift in corporate strategy — one that most other automakers aren’t willing to adopt, let alone a company that got its foothold selling luxury sports cars and continues to depend on wealthy shoppers.

You do, of course, get better specs with Tesla. The Slate truck’s 240-mile (386-kilometer) upgrade battery, for instance, doesn’t hold a candle to the 360 miles (579 kilometers) possible with a Model 3. But that’s not going to matter to people who don’t have a large pocketbook, especially since 240 or even 150 miles is potentially manageable if you’re not planning long road trips. My weightlifting gym is less than 18 miles away, and my son’s school is closer still — I could do both runs in a day with room to spare, and be ready for more after home charging.

Riding the Inmotion V14 unicycle on rocks.

Everything you need to know about PEVs, or personal electric vehicles

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How much does Slate matter though, really?

Looking down the road

Slate

In the short term, Tesla probably isn’t worried that much. Slate is a new company that has yet to sell a single vehicle, never mind compete with one of the largest automakers in the world. Assuming its truck is a hit, Slate is going to have to scale up rapidly to meet demand, and that could take years — giving Tesla leadership plenty of opportunity to pivot. Musk and the rest are probably more concerned about Rivian, which is already making inroads, all the more so because of Musk’s politics. I’ve seen many social media posts from people who sold their Teslas specifically to get R1Ts.

The Model T was successful precisely because it turned a previously unaffordable product into something the average American would be stupid not to own.

Market disruption sometimes comes fast, mind. In a little over a decade, Tesla itself has gone from being a boutique EV maker to having several highly automated international factories. With investors like Bezos behind it, Slate could be poised to eat into Tesla’s marketshare, gaining popularity much like Ford did after it launched the Model T. That comparison isn’t an accident, either — the Model T was successful precisely because it turned a previously unaffordable product into something the average American would be stupid not to own.

We’ll have to see if Slate can deliver. Many new automakers look good on paper, but the EV industry is littered with failed startups. Slate’s future may be dependent on how much people value the benefits of going electric over turning to the used ICE vehicle market for range and creature comforts.