Social media was lit up in comments when startup Slate Auto announced its roughly $25,000 electric pickup truck last month. Many people saw the no-frills vehicle with a silent body and nostalgic hand crank windows.
How uncontrollable? According to Cox Automotive, average monthly payments for new cars in March skyrocketed to $739, from $537 in January 2019. The average new car costs $47,400, while the electric model costs around $59,200. Currently, the high interest rate of around 9.4% on a 72-month loan has further increased the car financially.
“Prices and interest rates are high and stacked,” said Mark Schirmer, director of industry insights at Cox Automotive. “If it's not on the market since 2018, it must be shocking that the cost of a car will be expensive.”
President Trump's 25% tariffs on imported cars and parts have rushed to buy consumers before prices rise further. Cars that cost less than $30,000 are particularly vulnerable. Almost 80% of them are subject to customs duties. It includes consumer staples like the American-made Honda Civic and Toyota Corolla. Supply of budget models is expected to shrink, and automakers could halt imports of certain models altogether.
Enter Slate, a suburban Detroit-based company supported by venture capital firm and Amazon founder Jeff Bezos.
Former Fiat Chris Berman, Slate CEO, said that slate trucks will not be available until late 2026, but are explicitly designed to mitigate sticker shocks.
True to its name, the truck is designed to be a blank slate that allows buyers to add over 100 accessories, such as power windows and heated seats, as budgets are allowed or needs change. There is no built-in stereo or touchscreen display, but there is a dock for phones and tablets, saving money and avoiding the digital obsolescence that often plagues car entertainment and navigation systems.
“I think hardworking Americans are looking for good value for money,” Berman said in a recent interview.
The message appealed to 41-year-old Liv Leigh, 41, who jumped on a slate truck during his public debut at California's Long Beach Airport in April. Biomedical designer and electric car enthusiast Lee paid $50 to book the slate.
She saw the company's employees transform the two-seat pickup into a five-seater sports utility vehicle in about an hour. Lee appreciates the tidy size of the track shorter than the Civic and its modest 150-mile range.
“I love the idea of ​​a beater track, an absolute base that allows you to stick dogs, muddy bikes and plywood behind,” Lee said. “We don't need a huge vehicle to carry things.”
Berman said efficient design and production is key to the low price of the company's promise. The grey plastic composite body panels on trucks eliminate the need for steel body stamping plants or paint shops that could cost automakers millions of dollars.
If the Ford Model T, an egalitarian car of another age, was born in black alone, the Slate offers vinyl body wraps in a variety of colors and styles. Buyers can also choose larger factory installed batteries in the 240 miles range.
“It all keeps costs down, but it also feeds customers with freedom of choice,” Berman said. “They can equip the vehicles the way they want, not the way the manufacturer designed them.”
Slate hopes that the US-based supply chain, which includes batteries manufactured by South Korean company SK On, will be eligible for a $7,500 federal tax credit. Republican lawmakers on Monday announced a budget bill that eliminated that incentive and dismantled other Biden-era climate and energy policies.
It all depends on Slate successfully navigating the dangerous paths of electric vehicle startups. Several young automakers, including Fisker, Nikola and Canoo, have closed in search of bankruptcy protection.
With or without subsidies, Slate has a viable business plan, Berman said.
The company wants to price the truck in the middle of $20,000 before government incentives. It wants to cover Nissan leaves, which is the most affordable electric vehicle at $29,300, but is no longer eligible for tax credits. Chevrolet plans to offer a redesigned bolt SUV for around $30,000 by the end of the year. The General Motors brand intended Bolt to qualify for a tax credit, lowering its effective price to about $22,500.
Erin Keating, executive analyst at Cox Automotive, praised the slate truck for its originality. But she said the two-seat pickup of short-range and bare bone interiors might not appeal to American car buyers who have become used to having lots of high-tech and creature comforts.
“There's nothing wrong with trying to crack the affordable crisis, but I don't see this as a massive volume seller,” Keating said. “In the end, this is a very small EV and it contains little nothing. This has increased the longer range of affordable options.”
Ford Maverick is a potential rival who could claim the outlook for the Slate. Its compact pickup is 2 feet longer than the slate. It has five passengers seated and offers even more features. The hybrid version reaches 40 miles per gallon and travels over 500 miles in a full tank.
Ford sold 131,000 Mavericks last year, suggesting there is strong demand for small, energy-efficient trucks. The company has increased the starting price for hybrid versions of the truck to $4,200 and $28,150 since 2024. This included the increase last week, which Ford Motor confirmed, was part of the response to tariffs on trucks being assembled in Mexico. The company said it would not pass all the tariffs on its customers and would offer it to all cars at the same price as it would be sold to employees until early July.
Like all vehicle categories, American pickup trucks represent how cars have changed over the past decades. Some gorgeous pickups can cost as much as a large European luxury sedan. Tesla, Libian and Ford electric trucks range from $70,000 to $100,000 or more.
Berman is watching the market openings for businesses such as entry-level truck fans, families shopping for a second car, empty nesting players, landscapers, contractors and delivery workers. The company expects to sell more trucks to people who would otherwise buy second-hand cars. Its average price is $26,000.
One of the big challenges for Slate and other companies that want to sell more affordable cars is that many Americans don't seem to buy such cars, despite what they say they want.
Keating pointed out that around 20 models in the market start at under $25,000. All are small cars or SUVs, including the $18,300 Nissan Versa, the cheapest car on the market.
Almost all medium-sized family sedans start at under $30,000, including the Honda Accord, Toyota Camry and Hyundai Sonata. However, many Americans reject them in favor of larger vehicles. SUVs, pickups and minivans currently account for more than 80% of the market.
Trump's trade policy remains a wild card. Analysts hope that tariffs will add thousands of dollars to the price of new cars, increasing demand and prices for used cars.
Americans bought 1.5 million new cars in April, 400,000 more than in April 2024. But analysts said people are buying now to avoid being covered up later. Cox Automotive chief economist Jonathan Smoke said new car stocks have fallen to the lowest level in two years, suggesting prices could rise as dealerships are gone before tariffs come into effect. Another research firm, S&P Global Mobility, has lowered its forecast for new car sales, and expects it to fall by 4% this year.
For those looking for a safe harbor amid a financial storm, electric vehicles are a wise choice, Keating said. Between the government and automaker incentives, new electric vehicles received an average discount of 13.3% in March, saving nearly $8,000.
Lee recently leases the Chevrolet equinox for two years, paying $5,500 in advance, resulting in a monthly payment of $230. The electric SUV has a 319-mile operating range. “Some people don't realize how many incentives are there,” she said.
