Slate Auto CEO Peter Faricy said every $24,950 electric pickup truck the Michigan-based startup produces will be gross margin positive, targeting positive free cash flow and EBITDA by 2027. Faricy made the statement during an interview at the company's new design studio outside Los Angeles. The profitability strategy relies on a simplistic product design, customer-focused business model, and a break-even point of roughly 80,000 vehicles annually — just over half the 150,000-unit production capacity planned at its Warsaw, Indiana assembly plant. The announcement comes as EV startups including Rivian Automotive and Lucid Motors report billions in annual losses, while Lordstown Motors and Fisker Automotive filed for bankruptcy.
Slate Auto Targets 80,000-Unit Break-Even Point with Gross Margin Positive Vehicles
Faricy, former vice president of Amazon Marketplace appointed to lead Slate Auto in March, said the company can succeed where other EV startups have failed because of its simplistic product, customer-focused business strategy, and break-even point of roughly 80,000 vehicles a year. The break-even point is just over half of the 150,000-unit production capacity the company plans to have at its assembly plant in Warsaw, Indiana. Slate is continuing to build out that facility while also producing prototype vehicles. "We have a different cost structure and a different business model than other automakers have," Faricy said, citing the simplicity of Slate's vehicle and manufacturing process as well as the ability to customize the EVs. "It's an ambitious goal. No other automotive company has been able to do that before."
Slate Auto Announces $24,950 Base Price for Two-Seat Electric Pickup
Slate's flagship product is a two-seat, $24,950 bare-bones electric pickup truck with crank windows and optional speakers. The truck can be converted into a five-passenger sport utility vehicle for an additional $5,000. The vehicles will feature a Slate-estimated EV range of 205 miles, 181 horsepower and 195 foot-pounds of torque. Slate was in stealth mode until the company revealed its flagship EV in April 2025, when it said the initial starting price would be under $20,000 including up to $7,500 in federal tax incentives that were available at the time and have since been discontinued. Slate President of Vehicles Chris Barman said current expectations are for the SUV to represent 60% of sales, despite the pickup being the base model at roughly $25,000. The starting price is roughly half the cost of a new vehicle sold, according to Cox Automotive data.
Slate Auto Raises Over $1.3 Billion, Eyes Public Listing After 2027
The startup has raised more than $1.3 billion in capital through three financing rounds, two of which were led by Mark Walter's TWG Global investment holding company after a Bezos-affiliated lead round. Faricy declined to discuss Slate's capital runway but confirmed the company is continuing to opportunistically raise funding as it prepares to produce vehicles for consumers later this year and ramp up production, with deliveries expected during the fourth quarter. He didn't rule out the possibility of Slate going public, but said it would likely be too early to do that before the company ramps up production next year. "We're going to constantly take a look at what our options are. Certainly going public will be one," said Faricy, who was recruited to the company by Slate co-founder and fellow Amazon executive Jeff Wilke. "2027 is probably too soon, in my book. I think we'll want to really make sure that we're launching and scaling the business well."
Slate Auto Opens Preorders with $300 Nonrefundable Deposits
Slate has received more than 180,000 reservations for its vehicles and is officially opening up preorders on Wednesday. The reservations required refundable $50 deposits, but the orders will come with $300 nonrefundable down payments. The vehicles have injection-molded composite exteriors and a litany of do-it-yourself options. The plan is for every vehicle coming off the line to be the same to reduce complexity, before the addition of any features or different covers/tops such as fastback or squared-off to look similar to a Jeep Wrangler SUV. Slate's vehicle does not feature any "connectivity" such as a modem or large screens, just a small driver information screen for range, speed and other standard gauges and warnings. Instead of a center infotainment system, drivers can use their own devices, such as a smartphone or tablet, for navigation and music.
Slate Auto Offers Vinyl Wraps and 175+ Accessories Under $500
The exteriors of the Slate vehicles won't be painted. The company said they were engineered to be wrapped with a vinyl film, eliminating the need for a costly paint shop. Slate is offering more than 100 standard wrap colors for under $500, but customers also can essentially pick any color or design they can imagine. The vehicle also will launch with more than 175 accessories, with over 80% of those priced under $500, including roof racks, stereos and light covers. "Whoever you are and whatever you like in life, you can now express that through your SUV or through your truck," Faricy said.
Slate Auto Plans Fourth Quarter Deliveries from Warsaw Facility
The company continues to build the vehicles by hand, along with some factory automation, according to Dan Tasiemski, Slate's head of manufacturing engineering. Slate is aiming to begin operating the factory through its normal production processes by August, he said. Slate, which Tasiemski said is building about three vehicles a day, still needs to go through required federal vehicle validation and certification for things such as range, safety and other aspects. Slate plans to deliver its vehicle directly to customers rather than through franchised dealers. "I think it's an important part," Faricy said, adding that he thinks it will lead to lower costs and better control over the customer experience. "We're definitely going to be a direct-to-consumer company."
FAQ
What is Slate Auto's break-even point for profitability?
Slate Auto CEO Peter Faricy said the company's break-even point is roughly 80,000 vehicles a year, which is just over half of the 150,000-unit production capacity planned at its Warsaw, Indiana assembly plant. Faricy stated every $24,950 vehicle will be gross margin positive, targeting positive free cash flow and EBITDA by 2027.
How much does Slate Auto's electric pickup truck cost?
Slate Auto's two-seat electric pickup truck starts at $24,950. The truck can be converted into a five-passenger SUV for an additional $5,000. The vehicles feature a Slate-estimated EV range of 205 miles, 181 horsepower, and 195 foot-pounds of torque. The starting price is roughly half the cost of a new vehicle sold, according to Cox Automotive data.
When will Slate Auto begin delivering vehicles to customers?
Slate Auto expects deliveries during the fourth quarter this year. The company is officially opening preorders on Wednesday with $300 nonrefundable down payments, after receiving more than 180,000 reservations with refundable $50 deposits. Slate is aiming to begin operating its Warsaw, Indiana factory through normal production processes by August.
