Slate Auto secures $650M to accelerate affordable electric truck development

Slate Auto has secured an additional $650 million in funding as it nears the launch of its first budget-friendly electric pickup trucks, with production targeted for the end of 2026.

The company confirmed on Monday that the Series C round was led by TWG Global, which Guggenheim Partners CEO Mark Walter and investor Thomas Tull operate. While the company expressed appreciation to its “visionary investors” in its announcement, it did not disclose additional participants involved in the round.

With this latest raise, Slate Auto’s total funding now stands at დაახლოებით $1.4 billion. Earlier backers include General Catalyst, Jeff Bezos’ family office, Slauson & Co., and former Amazon executive Diego Piacentini.

The startup has strong ties to Amazon, both in leadership and structure. It was co-founded by Jeff Wilke, who previously served as Amazon’s Consumer CEO. Several senior leaders across departments, such as mobility, user experience, e-commerce, fleet sales, and human resources, also come from Amazon backgrounds. Recently, Peter Faricy, a former Amazon Marketplace vice president, was appointed CEO, while former CEO and Chrysler veteran Chris Barman transitioned to President of Vehicles.

This funding round comes at a challenging time for the U.S. electric vehicle market. Many established automakers have begun scaling back their EV ambitions, particularly following the removal of the $7,500 federal tax credit last year. Tesla has reported declining overall sales for two consecutive years, while newer entrants like Rivian and Lucid Motors have struggled to scale production, even as they prepare to introduce more affordable models.

Founded in 2022, Slate Auto is taking a notably different approach from most automakers. Instead of targeting the premium EV segment, the company is focusing on the ultra-affordable end of the market. Its first vehicle is expected to be a minimalistic electric pickup truck with a starting price in the mid-$20,000 range.

Buyers will have the option to customise the truck with additional features at extra cost. One such option includes an SUV conversion kit, expected to cost around $5,000. Initially, the company aimed to price the vehicle at approximately $27,000, and after emerging from stealth in 2025, it promoted a starting price of “under $20,000” when factoring in the federal tax credit. However, final pricing details are now expected to be announced in June.

Despite the loss of federal incentives, Slate Auto has generated strong early interest. The company has already received more than 160,000 refundable reservations for its electric vehicle. To support production, Slate is investing several hundred million dollars into refurbishing a former printing facility in Indiana, which will serve as its manufacturing plant.

The company also indicated that appointing Faricy as CEO was partly driven by the need to convert these reservations into confirmed purchases as it prepares for its commercial launch.