Slate Auto says low-cost EV pickup can be profitable as preorders open

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Slate Auto low-cost EV pickup

Highlights

Slate Auto opens preorders for its $24,950 modular electric pickup with over 180,000 reservations and plans first deliveries in Q4 2025.
CEO Peter Faricy states all vehicles will be gross margin positive, targeting positive free cash flow and EBITDA by 2027 at an 80,000 vehicle break-even point.
Slate has raised over $1.3 billion in funding, expects 60% of sales from the $5,000-upgrade SUV variant, and continues raising capital as facility buildout progresses.

Preorder launch and profitability target

As reported by CNBC, Slate Auto is opening preorders for its modular electric pickup after collecting more than 180,000 reservations backed by refundable $50 deposits. Formal orders require a $300 nonrefundable down payment as the company prepares to start consumer production later this year and increase output ahead of fourth-quarter deliveries.

Chief executive Peter Faricy says every vehicle produced by the Michigan-based startup will be gross margin positive. He says that target underpins the company’s goal of reaching positive free cash flow and positive earnings before taxes, depreciation and amortization by 2027, even as he describes the plan as ambitious.

Faricy argues Slate’s simplified product design, customer-focused strategy and break-even point of about 80,000 vehicles a year give it a better chance than other recent EV startups. That threshold is slightly above half of the 150,000-unit production capacity planned for the company’s assembly plant in Warsaw, Indiana, where Slate is continuing facility buildout while producing prototypes.

Product positioning and funding outlook

Slate’s flagship model is a two-seat electric pickup with a base price of $24,950, featuring crank windows and optional speakers in a deliberately stripped-down configuration. The vehicle can be converted into a five-passenger sport utility vehicle for an additional $5,000, and Slate estimates a range of 205 miles with 181 horsepower and 195 foot-pounds of torque.

The startup emerged from stealth in April 2025 and initially said the vehicle would start at under $20,000, a figure that included up to $7,500 in federal EV tax incentives that have since been discontinued. Slate has raised more than $1.3 billion across three funding rounds, including two led by Mark Walter’s TWG Global after an earlier Bezos-affiliated round.

Faricy declines to detail the company’s capital runway but says Slate continues to raise funding opportunistically as it moves toward production ramp-up next year. He also does not rule out a public listing over time, though he says 2027 is probably too soon and that the company wants to focus first on launching and scaling the business well.

Slate President of Vehicles Chris Barman says the company currently expects the SUV version to account for 60% of sales, despite the pickup serving as the entry model at roughly $25,000. The starting price is about half the average cost of a new vehicle sold, based on Cox Automotive data.

Chinese EV technology is increasingly entering India through supply and licensing partnerships, even as New Delhi keeps Chinese automakers largely out of its domestic market. We previously reported that deals such as Tata Motors using Chery’s vehicle platform and JSW Motor securing access to multiple Chery platforms are helping Indian manufacturers accelerate EV rollouts while reshaping competitive pressure across global suppliers.

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