Slate Auto’s new $24,950 electric pickup is getting noticed largely because such a low-priced new vehicle has become unusual in the United States.
Its arrival also underscores a broader contrast: while new-car prices keep rising for U.S. buyers, cheaper and increasingly capable are gaining ground in many other markets.
What’s happening?
Detroit startup Slate Auto, backed by Amazon founder Jeff Bezos, has begun taking preorders for a two-seat electric pickup starting at $24,950.
The Guardian that the price puts the Slate truck among the least expensive new vehicles available in the U.S., where fewer than 5% of new vehicles sold last year cost $25,000 or less, according to Edmunds analysis.
Edmunds stated that the share was nearly 21% in 2019, while the average transaction price for a new vehicle has since climbed to $48,402.
In China, meanwhile, shoppers can choose from more than 200 EVs and hybrids priced below $25,000, and some sell for as little as $10,000.
The difference is also showing up in other regions. Despite tariffs, Chinese-made vehicles accounted for about 20% of December new-car sales in the United Kingdom. and 6.4% of the European Union market last year.
BYD, the Chinese automaker that now makes more EVs than Tesla, offers premium vehicles for less than $15,000 with ranges of up to 314 miles.
Why does it matter?
More affordable EVs could help more families clear the biggest hurdle in — the upfront price — while still giving them access to lower fuel and maintenance costs than gas vehicles typically have.
Slate is cutting costs with a deliberately sparse setup that includes hand-crank windows, no stereo, a smartphone mount instead of built-in navigation, and an estimated range of 205 miles.
Owners can add features later, but those upgrades can quickly raise the total cost.
Jessica Caldwell, Edmunds’ executive director of Insights, doubts that many Americans will want such a stripped-down vehicle.
“I don’t think they’re going for the stripped-down version because the features, amenities, and technologies – those are part of why prices in the US are so inflated, because Americans wanted all the additions,” Caldwell said, according to The Guardian.
Demand for bigger vehicles packed with features has played a major role in shaping the U.S. auto market.
That could also put domestic automakers at a disadvantage if foreign competitors continue producing smaller, cheaper EVs with more features and longer range.
What’s being done?
Slate’s launch suggests some companies believe the lower-cost EV segment still has room to grow in the U.S.
The company’s strategy is to use a lower entry price to attract budget-focused buyers, while leaving customization for later through add-ons.
Backers of U.S. EV production argue that many more efforts like this will be needed if American automakers want to remain competitive.
Dan Krassner of the American EVs Jobs Alliance said the issue extends far beyond vehicle sales.
“We can’t hand the whole auto industry to Beijing,” Krassner said, per The Guardian. “EVs are the big manufacturing prize of the century, and America has to get back in the race.”
If dealerships end up offering more lower-cost EVs, consumers could have a better shot at spending less on gas, avoiding some maintenance problems, and moving to cleaner transportation without stretching their finances as much.
“The price point is really attractive, and we hope Americans see that it matches their budgets and also shows automakers that there is hunger for cheaper ” Krassner said.