Slate Auto, a Jeff Bezos-backed electric vehicle startup, has removed claims that its upcoming all-electric pickup truck will start “under $20,000” after Congress passed President Trump’s tax cut bill, according to Slate Auto’s updated website. The legislation, set to be signed into law on July 4, 2025, will eliminate the $7,500 federal EV tax credit by September, a key incentive Slate relied on to hit its aggressive price target. This shift could challenge the company’s mission to deliver a radically affordable electric pickup.

Tax Credit Loss Reshapes Pricing Strategy

The federal EV tax credit, which offered up to $7,500 off qualifying electric vehicles, was a cornerstone of Slate’s pricing promise. When the company emerged from stealth mode in April 2025, it heavily marketed the pickup’s sub-$20,000 starting price, a figure that hinged on the credit, as archived versions of Slate’s website confirm, reports TechCrunch. With the credit’s impending end, Slate has quietly updated its site, signaling a likely price hike for the truck, though the company has not yet disclosed a new starting price. A Slate spokesperson declined to comment on the change.

Slate Auto Drops ‘Under $20,000’ Ev Pickup Pricing As Federal Tax Credit Ends

This development is a setback for Slate, which positioned affordability as its core differentiator in a market where EV prices often exceed $40,000.

“The auto industry has driven prices to a place that most Americans simply can’t afford,” said Jeremy Snyder, Slate’s chief commercial officer, at the April launch event. “But we’re here to change that.”

The loss of the tax credit complicates that goal, potentially pushing the base model closer to $27,500 before options.

Industry Trends and Consumer Impact

Slate’s pivot reflects broader challenges in the EV industry as federal incentives wane. The $7,500 credit, introduced to spur EV adoption, has helped brands like Tesla and Rivian attract buyers, but its removal could slow growth in a price-sensitive market.

For Slate, which won’t begin production until late 2026, the timing is particularly tough. The startup’s focus on customization—offering buyers extensive options for features like battery range and bed configurations—may soften the blow, as CEO Chris Barman noted at the launch:

“We are building the affordable vehicle that has long been promised but never been delivered.”

However, with few buyers likely to choose the base model, higher-trimmed versions could push prices well beyond the original target.

The average U.S. EV price hovers around $56,000, according to industry data, making Slate’s initial $20,000 promise a bold outlier. Without the tax credit, Slate may struggle to compete with established players offering larger batteries or more premium features. For consumers, particularly EV enthusiasts and first-time buyers, the price shift could dampen enthusiasm for Slate’s pickup, especially in rural markets where affordable, long-range trucks are in demand.

Technical and Operational Outlook

Slate’s pickup is designed for efficiency, with a projected range of 250 miles (402 kilometers) and a modular platform for upgrades. The company has not released detailed specs, such as battery size or towing capacity, but its emphasis on customization suggests a flexible architecture.

Production delays until 2026 give Slate time to refine its supply chain and manufacturing, potentially offsetting some cost increases from the lost credit. However, rising raw material costs for batteries—lithium prices have climbed 15% in 2025—could further pressure pricing.

Regulatory and Economic Implications

The end of the EV tax credit aligns with the Trump administration’s push for deregulation but may hinder U.S. EV adoption, which reached 7.6% of new vehicle sales in 2024. For Slate, navigating this landscape will require creative cost-cutting or alternative incentives, such as state-level rebates or financing deals. The company’s ability to deliver a compelling, affordable truck without federal support will test its viability in a competitive market.

Photos courtesy of Slate