{"id":3672,"date":"2025-05-03T14:00:27","date_gmt":"2025-05-03T14:00:27","guid":{"rendered":"https:\/\/slaterides.com\/?p=3672"},"modified":"2025-05-06T06:23:31","modified_gmt":"2025-05-06T06:23:31","slug":"how-slate-made-its-20000-ev-so-cheap","status":"publish","type":"post","link":"https:\/\/slaterides.com\/es\/how-slate-made-its-20000-ev-so-cheap\/","title":{"rendered":"How Slate Made Its $20,000 EV So Cheap"},"content":{"rendered":"

Asking how Slate<\/a> was able to price its electric truck so cheaply may sound like a \u201cno-duh\u201d question. It\u2019s a bit like marveling at how Spirit Airlines is able to sell flights for 50 bucks. The answer is obvious, and in some ways not all that profound: Give people the absolute bare minimum, and charge extra for everything else.<\/p>\n

In Spirit\u2019s case, that means slapping on fees for carry-ons and printing out your boarding pass. Slate, a new auto startup that revealed itself last week<\/a>, plans to sell a truck that goes, stops, keeps you dry and, well\u2026 that\u2019s about it. Everything else is extra.<\/p>\n

The difference is that while budget airlines have been around for decades, affordable, no-frills cars are practically nonexistent today. Especially electric ones. And especially ones as radically simplified as the Slate, a two-door pickup truck that targets an entry price of under $20,000 after federal EV rebates<\/a>.<\/p>\n

<\/section>\n

Plus, there\u2019s a lot more to Slate\u2019s secret sauce than just tossing your power mirrors and other gadgets in the trash, top executives told InsideEVs<\/a>.<\/p>\n

The Slate Truck: Why Is It So Cheap?<\/h2>\n

Hitting that affordable price point\u2014around $27,000 before incentives\u2014started with a mindset shift around what people actually need in a car, Slate CEO Chris Barman said.<\/p>\n

\u201cWe’ve challenged everything around making a vehicle, in making sure that we understood whether it should be part of the equation or not,\u201d she said.<\/p>\n

\n

\"Slate<\/p>\n

Photo by: Slate<\/p>\n

\n

The Slate truck<\/p>\n<\/div>\n<\/section>\n

That thinking led to a truck that sounds almost comically bare-bones in 2025. The Slate truck arrives late next year with no radio, no speakers, no touchscreen, no fancy automated-driving features, hand-crank windows and a single color: gray. Stripping out everything that\u2019s not strictly necessary for transportation and safety helped the company produce the everyman EV that\u2019s historically eluded America\u2019s car market<\/a>.<\/p>\n

As Barman put it in a promotional video: \u201cWe took out everything that wasn\u2019t a car.\u201d<\/p>\n

Tesla has talked up a $25,000 car<\/a> in the past, but that project stalled out in favor of Elon Musk\u2019s robotaxi dreams. Other electric newcomers like Lucid and Rivian opened up shop with pricey, fully-loaded models, the plan being to bring costs down over time as they scale up. That journey is slow-going.<\/p>\n

\n

\"Slate<\/p>\n

Photo by: Slate<\/p>\n

\n

The Slate truck<\/p>\n<\/div>\n<\/section>\n

Slate decided to flip the script by delivering a blank canvas that people can customize as they please through a vast catalog of accessories. That includes DIY-friendly stereo systems, interior finishes and even a bolt-on SUV kit<\/a>, all of which buyers can order to their homes or have professionally installed.<\/p>\n

\u201cYou’ve seen all of the others start on the high end and force the option content,\u201d said Eric Keipper, the carmaker\u2019s head of engineering. \u201cSo it’s our choice to start at the other end and build it up.\u201d<\/p>\n

Slate\u2019s Radically Simplified Manufacturing And Operations<\/h2>\n

There are other, less obvious ways that Slate slashed the cost of manufacturing and development by doing things differently. It opted to make the truck\u2019s exterior out of molded plastic, which Barman said saves costs on multiple fronts. First off, injection molding is cheaper than the conventional method of stamping sheets of metal into body panels.<\/p>\n

Second, since the plastic is colored gray all the way through, it doesn\u2019t need to be painted. That eliminates the roughly $350 million up-front investment required for a paint shop and a \u201cvery finicky and expensive operation,\u201d she said. Instead, Slate will sell customers vinyl wrap kits in any color.<\/p>\n

\u201cComing in at this level of the market, you have to be very focused on your cost and mindful of that,\u201d Barman said. \u201cNot only the cost of the vehicle, but the cost of your operation.\u201d<\/p>\n

\n

\"Slate<\/p>\n

Photo by: Slate<\/p>\n<\/section>\n

By omitting an infotainment system, Slate doesn\u2019t need you to pay for it, sure. But it also doesn\u2019t need to spend time and money developing the software that goes into it.<\/p>\n

And by having its factory<\/a> spit out a single, uniform variant that buyers can trick out later on, the company aims to cut a lot of complexity out of its manufacturing process. It just needs to get very good at churning out the exact same vehicle over and over again. That will come in handy given that Slate is targeting 150,000 units of annual output about a year into production\u2014a far higher volume than any U.S. EV startup has achieved, aside from Tesla.<\/p>\n

\u201cEvery one we build is the same,\u201d she said. \u201cSo as we produce those vehicles at scale, then it helps to keep our costs down.\u201d<\/p>\n

Of course, there\u2019s also a lot of logistical complexity in making sure all the accessories customers order end up in the right place at the right time. But Slate is betting its unconventional approach will pencil out. And it very well may, especially when you account for all the additional revenue it could rake in from owners who shell out for upgrades over time.<\/p>\n

\n

\"Slate<\/p>\n

Photo by: Slate<\/p>\n

\n

The Slate truck can transform into an SUV through a bolt-on kit.<\/p>\n<\/div>\n<\/section>\n

Another decision that may help bring down costs: Making things in North America. Barman said the company hasn\u2019t had to adjust any of its sourcing due to President Donald Trump\u2019s wide-ranging tariffs<\/a>, which include a 25% fee on imported car parts and huge duties on a variety of Chinese goods.<\/p>\n

\u201cWe’re well insulated against that. Our mantra from the beginning was we wanted to source as much domestic content as we could,\u201d Slate\u2019s CEO said. However, it\u2019s still looking to move sourcing for some components out of China, and there are some old-school parts it needs that simply aren\u2019t made in the U.S. anymore. For example, Slate imports its hand-crank window systems from Brazil.<\/p>\n

Furthermore, instead of going with cheaper lithium-iron-phosphate (LFP) batteries<\/a>, which would be difficult to source while remaining compliant with the EV tax credit\u2019s anti-China provisions, Slate chose to outfit its truck with pricier made-in-America cells. So, as long as that policy remains on the books<\/a>, the truck will qualify for the $7,500 federal rebate for plug-in cars. That\u2019s a big part of the truck\u2019s price proposition.<\/p>\n

\n

\"Slate<\/p>\n

Photo by: Slate<\/p>\n

\n

Slate plans to sell an EV that’s bare-bones basic, but deeply customizable.<\/p>\n<\/div>\n<\/section>\n

What about getting your Slate serviced if something breaks? Barman said the company will partner with “well-known and well-recognized entities that do service today” instead of building out its own brick-and-mortar locations like Tesla, Rivian and Lucid have done.<\/p>\n

\u201cWe want to be very asset-light. We don’t feel that we need to build up that infrastructure ourselves,\u201d she said.<\/p>\n

Will The Slate Truck Work?<\/h2>\n

One big question is whether Slate can cross the so-called \u201cvalley of death\u201d that has claimed so many<\/a> other<\/a> EV<\/a> startups<\/a>\u2014the chasm between an interesting concept and a sustainable, profitable business. That requires a lot of manufacturing scale and, typically, regular cash infusions totaling in the billions. Lucid and Rivian still aren\u2019t in the black, and Tesla only notched its first full year of profitability in 2020.<\/p>\n

Slate argues it can. The company\u2019s chief commercial officer, the Tesla veteran Jeremy Snyder, told The Verge<\/em><\/a> that its simplified manufacturing process should allow it to \u201creach cash-flow positivity very shortly after start of production.\u201d<\/p>\n

Another unknown is whether people will embrace the Spirit Airlines of EVs, albeit one with a presumably better customer experience. Will Americans appreciate a stripped-down, highly customizable EV? Or will they feel nickel-and-dimed?<\/p>\n

It\u2019s hard to say, since this strategy hasn\u2019t been attempted before. But people love to dunk on Spirit. And yet, a record 44 million people<\/a> flew on the airline last year.<\/p>\n

Got a tip about the EV world? Contact the author: Tim.Levin@InsideEVs.com<\/a><\/em><\/p>\n

<\/section>\n
\n

Share this Story<\/p>\n<\/div>

This post<\/a> was originally published on this site<\/a><\/p>","protected":false},"excerpt":{"rendered":"

The EV startup launches for real in late 2026 with a minimalist truck and a simplified manufacturing process.<\/p>","protected":false},"author":1,"featured_media":3674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAowvYiiDA:productID":"","_gspb_post_css":"","footnotes":"","_sr_story_type":"","_sr_verification_state":"","_sr_primary_source_url":"","_sr_additional_sources":"","_sr_last_verified_date":"","_sr_key_takeaway":"","_sr_content_lane":"","_sr_rights_record_id":"","_sr_rights_status":"","_sr_required_credit":"","_sr_commercial_relationship":"","_sr_disclosure_text":"","_sr_originality_promise":"","_sr_editorial_qa":"","_sr_owner_decision":"","_sr_next_review_date":""},"categories":[26],"tags":[],"sr_verification":[],"sr_journey_stage":[],"class_list":["post-3672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"blocksy_meta":[],"yoast_head":"\nHow Slate Made Its $20,000 EV So Cheap - 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