There’s a mysterious new car company at work in Michigan. It’s working fast. It’s working quietly. And it’s nearly ready to show itself to the public.
TechCrunch reports that Amazon founder Jeff Bezos “is funding a secretive EV [electric vehicle] startup based in Michigan called Slate Auto that could start production as soon as next year, according to multiple sources and documents that link the billionaire’s family office to the startup.”
It has an aggressive goal and a unique strategy, essentially the opposite of the plan Tesla and other EV builders have used to grow. It will start with a cheap, mass-market vehicle. Two unnamed sources inside the company told TechCrunch that Slate is building “an affordable two-seat electric pickup truck for around $25,000.”
Growing in Silence
The company has been around in some form since 2022. It grew out of Re:Build Manufacturing, a project of Bezos and former Amazon executives.
The company reportedly has a substantial war chest and “a team of 200 to 500 employees,” according to EV news site Electrek. Many came over from other domestic automakers. It’s not done hiring, either. A LinkedIn page verified just last month lists 45 job openings.
According to TechCrunch, the company aims to start production next year at a factory in Indiana.
But Slate is trying to keep to stealth mode for now. A frustratingly vague website promises, “It’s a radically new kind of [REDACTED] that’s designed to put the power of choice back in the hands of [REDACTED].”
The Opposite of the Usual Growth Tactic
It’s likely an inexpensive electric vehicle.
Slate would hardly be the first EV startup. But it might be the first to start at the bottom of the price scale.
Starting up a new automaker is one of the most complex challenges in business because it requires many years of heavy spending before the ledger goes black. Starting new factories, building a sales network, and advertising enough to gain a foothold in the American mind takes years of cash outlays with no promise investors will make their money back.
Tesla, the only modern success story, made its first profit selling cars in its 19th year in business.
Most EV startups have followed an established business strategy: They start with an expensive luxury product. As sales of that car pay for the research and development involved in designing it and the tooling to build it, they introduce less expensive models over time.
Tesla pioneered the approach, with the high-end Model S opening a hole for the mass-appeal Model Y to drive through.
Lucid and Rivian are trying to follow it (though neither is yet profitable, both have hefty outside investments). Others, like Lordstown Motors and Fisker, have failed in the attempt.
Slate is reportedly trying the opposite tactic.
The Elusive Cheap EV
If TechCrunch’s reporting is accurate, Slate will start with a two-seat electric pickup with a target price of $25,000. That would instantly make it one of the least expensive new cars available to Americans.
It’s not yet clear whether Slate intends to hit that price with or without the help of the federal government’s $7,500 EV tax credit.
Automakers have almost completely abandoned shoppers looking for cars under $25,000 in recent years. The pandemic-era economy, heavy inflation, and high interest rates left car shopping easiest for high-income, better-credit buyers. So, automakers tailored their lineups to attract them.
President Trump’s massive tariffs may only amplify the effect. Some analysts believe automakers will likely cancel inexpensive cars if the tariffs last long.
The shift toward electric vehicles, in theory, should make inexpensive cars easier for automakers to build. EVs are built on so-called skateboard platforms – nearly-flat assemblies of batteries, motors, suspension, and steering components. Automakers can scale a skateboard platform up or down to create many different models. That lets them share components across many different models, spreading the cost.
GM, for instance, uses many of the same parts in its roughly-$35,000 Chevrolet Equinox EV and its forthcoming $300,000-plus Cadillac Celestiq.
But the inexpensive EV, in theory easy, has proven elusive. Tesla last year abandoned plans for a Model 2 in the same price range as the Slate truck.
More to Come Soon
Slate’s plans are currently vague, but we expect to know more soon. The company recently invited journalists to a vehicle reveal event in late April.