(NEW YORK) — The country’s electric vehicle market has an affordability problem.
Enter Slate, a new company backed by Amazon CEO Jeff Bezos and two investment funds. On Thursday, company executives unveiled an inexpensive, spartan electric truck that comes at a critical time for U.S. consumers and the industry.
Priced below $30,000, the truck, which will be built in an undisclosed location in the Midwest, could sway more price-conscious Americans to buy an EV. Plus, the $7,500 federal tax credit drops the starting price to under $20,000, according to Chris Barman, Slate’s CEO.
“This is a radically affordable and customizable vehicle,” Barman told ABC News ahead of the truck’s global debut. “We only put the essentials, the basics, in the vehicle. We wanted to strike a good balance with price and range.”
The truck’s range is 150 miles and jumps to 240 miles if a customer chooses to purchase the extended battery pack. Barman, an industry veteran, described the philosophy of the truck as “plug and play,” saying customers can opt for a basic version or pay more for luxuries like power windows and an exterior color. The truck, which can also be transformed into an SUV, rolls off the line in a standard gray hue.
“It’s all about value and keeping the price low,” Barman noted. “There’s no radio or infotainment system. Customers can bring in a Bluetooth speaker. Manual windows that you crank by hand was a cost-saving measure. But there is heat and air conditioning.”
Barman estimates that adding back popular features would raise the price by about $10,000. The vehicle may not have a “native” navigation system but it does come equipped with standard safety tech: a backup camera, automatic emergency braking, forward collision warning, a forward-facing camera and auto high-beam headlights.
For $50, interested buyers can place a reservation on the Slate website. Production begins in the fourth quarter of 2026, according to Barman.
Tony Quiroga, editor-in-chief of Car and Driver, said he’s “really excited” to see the truck in person.
“It’s a bare-bones, stripped-down EV for people who wouldn’t necessarily be able to buy one,” he told ABC News. “For some EV buyers, price is more important. If your commute is pretty short and you have charging at home, you can use an EV that doesn’t have a lot of range.”
He added, “Hopefully it does what the [Ford] Maverick did for the small pickup truck segment — opening up an entirely new segment that no one had really filled.”
The high MSRPs of electric cars and SUVs, even with federal and state credits, have prevented a large chunk of Americans from owning one. Even some of the cheapest models currently available — the Hyundai Kona, Toyota bZ4x, Fiat 500e, Chevy Equinox EV and Nissan Leaf and Nissan Ariya — cost more than $30,000. Earlier this week, Tesla CEO Elon Musk reaffirmed that his company was on track to build a low-cost vehicle, with production starting at the end of June.
“There are a lot of people — way more than we talk about — who just need an affordable car,” Erin Keating, executive analyst at Cox Automotive, told ABC News. “Why does someone buy a 10-year-old car? It’s affordable and gets you from A and B. People overestimate the technology lower-income individuals need.”
The average transaction price of a new EV in March was $59,205 before incentives and discounts, according to Cox Automotive. To move inventory, dealers across the country are offering competitive deals on new models, including luxury brands.
“Recent tariffs on imported EV batteries and components from China, which accounted for approximately $1.9 billion worth of lithium-ion batteries in 2024, could further increase transaction prices, as these tariffs could raise the cost of imported materials by up to 82%,” Cox analysts noted in their analysis.
Keating noted that Slate could become the “Spirit Airlines” of the auto industry and its low-cost strategy may work — if federal tax incentives stick around.
“We’re struggling with affordability for vehicles and this is a solid opportunity for Slate to grab some market share off the bat,” she said. “Don’t hold breath though that the EV credit will stick around for long. Everyone assumes it will go away.”
Tyson Jominy, vice president of data and analytics at J.D. Power, said it’s unclear if consumers will accept an austere vehicle when many are willing to pay up for driver assistance systems and luxe interiors.
“Will consumers give up all the screens and creature comforts and tech? We’re getting really close to finding out that answer,” he told ABC News. “Everyone wants to talk about affordability and yet we continue to move further away from it. Monthly payments continue to trend higher because of interest rates but also because trade-in values of cars continue to go down.”
He went on, “The pressure to have an affordable vehicle will only increase as the number of affordable vehicles likely decreases because of tariffs.”
Jominy pointed out that Slate executives chose a two-seat, single cab design, a questionable move when SUVs dominate the nation’s roads and driveways.
“Single cab pickup sales are under 1% … and SUVs outsell regular cab pickups 100 to 1,” he said. “If you have the ability to launch as an SUV, just do the SUV.”
Barman argued that Slate fills a gaping hole in the U.S. auto market.
“It’s all about value and keeping the price low,” she said. “It’s feasible to produce a low-cost EV.”
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