Telo raises $20 million to build tiny electric trucks for cities

Telo, a California-based startup, is betting on a new approach to electric trucks by focusing on compact models designed for urban environments. Since its establishment in 2022, the company has developed the MT1, a small-sized electric truck priced at approximately $41,000. Recently, Telo announced a successful $20 million Series A funding round, co-led by renowned designer Yves Béhar and Tesla co-founder Marc Tarpenning, along with contributions from Salesforce CEO Marc Benioff and various early-stage venture funds. While $20 million may seem modest in the automotive industry, especially compared to competitors like Slate Auto, which has raised over $700 million, Telo is taking a more focused and strategic approach. CEO Jason Marks emphasized the company’s intent to target city dwellers who face parking challenges, stating, "Our hyper-focus is on trucks for the downtowns of cities." With an initial goal of producing about 5,000 units of the MT1 per year, Telo has already garnered a pre-order list of around 12,000. This strategy is aimed at achieving profitability as efficiently as possible, differentiating Telo from other automakers that often seek vast sums before reaching production. The funds from the Series A round will be utilized to finalize the MT1’s design, ensure compliance with U.S. safety regulations, and complete necessary crash testing. Given the MT1's unique design, particularly its short front end, safety is a critical focus for the company. Telo aims to deliver its first vehicle by late 2026. To maximize the potential of its funding, Telo plans to maintain a small workforce of around 25 employees while employing consultants and contractors with established industry connections. Marks noted the supportive community of angel investors and smaller firms interested in innovative mobility solutions. The MT1 boasts impressive utility, accommodating five passengers while featuring a five-foot bed—larger than some competing electric trucks. Additionally, it is expected to achieve a range of approximately 350 miles on a full charge, making it competitive with many of the leading electric vehicles currently available. Marks attributes this efficiency to the truck’s lightweight design and innovative battery packaging, which is still under patent consideration. Despite the challenges facing electric vehicles in the U.S. market, Marks is confident in Telo's unique approach. He reflects on the dual nature of Silicon Valley, emphasizing the importance of maximizing resource efficiency while pursuing ambitious goals. Telo's vision encapsulates the potential for a new kind of electric vehicle that caters specifically to the needs of urban consumers.