Slate Auto, a startup that had promised to offer an electric pickup truck priced at under $20,000 after federal incentives, has now had to backtrack on that commitment. The reason behind this change is the newly passed spending package by the Trump administration, which eliminates the federal tax credits that made such a low price point possible.
The company, backed by Jeff Bezos, aimed to revolutionize the electric vehicle market by offering a minimalist approach to their electric truck. The idea was to provide a basic model at a very affordable price and allow customers to customize and add features as they desired. This approach was likened to a life-sized Lego kit, where buyers could bolt on additional features such as paint options, power windows, infotainment systems, and even roof panels to convert the truck into an SUV or fastback.
Despite receiving over 100,000 reservations within two weeks of unveiling the truck, Slate Auto now faces a challenge in pricing their vehicle competitively without the federal tax credit. With falling battery prices and their stripped-down approach, the company still hopes to offer a compelling option in the EV market. However, the competition from other automakers like Tesla, who are also moving towards offering more affordable EVs, poses a significant challenge for Slate.
The company has not disclosed how much the additional features will cost or how high the final price could go. Without the federal tax credit, Slate will need to find new ways to attract customers and prove that their minimalist approach to electric vehicles is still a viable and attractive option in the market.
In conclusion, Slate Auto’s journey to offer an affordable electric truck has hit a roadblock with the elimination of federal tax credits. The company now faces the challenge of proving the value and appeal of their stripped-down vehicle in a market that is becoming increasingly competitive. It remains to be seen how Slate will navigate this new landscape and continue to attract customers without the help of the government incentives.