According to Slate CEO Peter Faricy, each and every one of its option-devoid electric pickups will be profitable. Faricy told CNBC that each truck will be gross margin positive, even at its new starting price. And it’s probably because the truck isn’t as cheap for customers as it was originally going to be, and Slate makes you pay for things every other car company throws in gratis.
Earlier this week Slate finally revealed official pricing for its budget electric pickup, and it’s a bit more than customers were initially hoping for. When the Bezos-backed EV startup first showed off its two-door pickup, the $7,500 federal EV tax rebate was still in place in the U.S., which would have dropped its then-advertised price of $27,500 down to a smooth $20,000. Such a price led to 180,000 would-be customers flocking to drop $50 for a reservation. Now, since the federal rebate is dead, Slate had to readjust its pricing to $24,950, before destination.
That’s more expensive than the Honda Civic, Kia K4, Toyota Corolla, and Volkswagen Jetta. But those are all sedans, and the Slate is a pickup — with the option to turn it into an SUV — so it’s more practical than anything at its price point, right? Well, also cheaper than the Slate to start are the Buick Envista, Kia Seltos, Chevy Trax, and Nissan Kicks, all of which are crossovers with decent trunks and hatchbacks. And all of those cars and crossovers come with speakers, power windows, door pocket, and freakin’ center consoles. If you want any of those things in your Slate, you’ll have to pay extra and even install them yourself. Except for power windows, as Slate isn’t even offering them anymore. They might come back to the options list, but nothing is official yet.
I get that Slate’s whole thing is being charmingly barebones, as a modern take on old-school, no-frills pickups. But there’s a difference between no-frills and lacking any sort of basic creature comforts at all. If Slate made sneakers, the shoelaces would be optional extras. But apparently customers are intrigued by this, so it isn’t entirely surprising that Slate can turn a profit on each truck when you’re paying for everything inside a la carte.
