Slate Auto raises $650M to fund its affordable EV truck plans

Slate Auto, an electric vehicle startup backed by Jeff Bezos, has successfully raised an additional $650 million as it gears up for the production of its first affordable pickup trucks, slated to hit the market by the end of 2026. The announcement made on Monday revealed that the Series C funding round was led by TWG Global, under the leadership of Guggenheim Partners' CEO Mark Walter and investor Thomas Tull. This latest funding boost brings Slate Auto’s total capital raised to approximately $1.4 billion. Notable past investors include General Catalyst, Bezos' family office, the venture capital firm Slauson & Co., and former Amazon executive Diego Piacentini, as highlighted by TechCrunch last year. The company, co-founded by Jeff Wilke, former CEO of Amazon's Consumer division, boasts a team with strong ties to the e-commerce giant, including the recent appointment of Peter Faricy, ex-VP of Amazon Marketplace, as its CEO. The timing of Slate Auto’s funding comes amid significant challenges within the U.S. electric vehicle market, where many established automakers are scaling back their EV initiatives, particularly following the repeal of the $7,500 federal tax credit last year. Tesla has witnessed a decline in sales for two consecutive years, while competitors like Rivian and Lucid Motors are grappling with production scaling despite their plans to introduce more affordable models this year. Founded in 2022, Slate Auto is setting itself apart by targeting the ultra-low end of the market with a no-frills electric truck anticipated to start at around $20,000. Customers will have the option to customize their vehicles, including an SUV conversion kit for an additional $5,000. Initially, the company aimed for a price point of approximately $27,000, but after revealing plans in 2025, it promoted a starting price of “under $20,000” with the tax credit factored in. Final pricing details are expected in June. Despite the loss of the federal tax credit, Slate Auto has generated considerable interest, amassing over 160,000 refundable reservations for its electric vehicle. The company has emphasized the importance of converting these reservations into confirmed orders, which is a key focus for new CEO Faricy. To facilitate production, Slate Auto is investing several hundred million dollars into revamping a former printing facility in Indiana, where the electric trucks will be manufactured.