Slate Claims All Its Trucks Will Be Profitable—Because You Pay Extra for Basics Other Cars Include

Slate CEO Peter Faricy has declared that every one of the startup’s no-frills electric pickups will turn a gross margin profit, even at its revised starting price. The bold claim comes after Slate adjusted pricing for its budget electric truck upward, removing the $7,500 U.S. federal EV tax rebate that was previously factored in. The truck’s original advertised price of $27,500 would have dropped to $20,000 with the rebate, but without it, the new starting price is $24,950 before destination fees.

That puts the Slate pickup above the Honda Civic, Kia K4, Toyota Corolla, and Volkswagen Jetta sedans, though Slate argues its practicality as a truck—and the option to convert it into an SUV—justifies the premium. The base Slate truck is now more expensive than several compact crossovers, including the Buick Envista, Kia Seltos, Chevy Trax, and Nissan Kicks, all of which come standard with features like speakers, power windows, door pockets, and center consoles. Slate, however, charges extra for nearly every basic convenience.

Power windows, for example, are no longer included in the base price and may return as an optional add-on later. The company markets itself as a modern take on no-frills, old-school pickups, but critics argue the lack of even rudimentary features crosses into impracticality. Despite this, Slate’s pricing strategy appears to be resonating with customers, as the company has already secured 180,000 reservations at $50 each.

Faricy told CNBC that Slate’s breakeven point is 80,000 vehicles, a target well within reach given current reservation numbers and the startup’s planned production capacity of 150,000 vehicles annually at its Warsaw, Indiana plant. Slate expects around 60% of customers to opt for the squareback SUV conversion, which increases the price to $29,950, while the fastback SUV version costs $31,950. These conversions, along with optional add-ons, could push profitability even further ahead of schedule.

Faricy acknowledged the goal is ambitious, stating no other automotive company has achieved profitability before taxes, depreciation, and amortization (EBITDA) this quickly. Rivian and Lucid, by contrast, continue to report multi-billion dollar losses. Slate’s strategy hinges on high-volume production and customer willingness to pay for upgrades, a model that could redefine profitability in the EV truck segment if successful.