The elimination of the federal electric vehicle tax credit may benefit newer market players, according to Slate Auto CEO Chris Barman.
EV Credit Elimination Opens New Doors
Speaking at Fortune’s Brainstorm Tech conference in Park City, Utah, Barman said the policy change has “opened up some opportunity” for the Jeff Bezos-backed startup.
Battery Supplier Capacity Increases
“What we’ve done is we’ve stepped back and surveyed multiple battery suppliers, and what we’re seeing is there are others in the industry that are pulling back as well on their EV launch plans—so it’s opening up capacity,” Barman explained. The Troy, Michigan-based company is now evaluating pricing options from various suppliers.
Mid-$20K Pricing Strategy Remains
Despite losing access to the $7,500 federal credit, Slate Auto maintains its “mid-20s” pricing target for deliveries by the end of 2026. Former Amazon.com Inc. (NASDAQ:AMZN) executive Jeff Wilke, Re:Build chairman and Barman’s co-speaker, noted the average U.S. used car price of $25,000 makes Slate competitive.
Simplified Manufacturing Approach
Slate Auto’s modular electric truck uses approximately 600 parts versus 4,000 in typical vehicle assembly operations. The Indiana-manufactured vehicle comes as a “blank slate” in gray with manual windows and no radio, allowing complete customization through add-ons.
The startup, also funded by Bezos and General Catalyst, secured $111 million in Series A funding. With over 100,000 reservations, Slate represents a shift toward affordable, customizable EVs amid cooling market growth that has affected Tesla Inc. (NASDAQ:TSLA) and other manufacturers.
Tesla CEO Elon Musk has supported ending EV subsidies, calling the impact “slight” for Tesla but “devastating” for competitors. However, Musk warned of “a few rough quarters” as credits expire
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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