Slate Auto cuts sub-$20,000 pricing after Trump administration ends federal EV tax credit

: Slate Auto, an electric vehicle startup backed by Jeff Bezos, announced it would no longer market its all-electric pickup truck as starting under $20,000 due to the anticipated end of a $7,500 federal EV tax credit via a new tax cut bill endorsed by the Trump administration. The young company, planning to begin truck production by late 2026, had used this attractive price point to garner attention and refundable reservations, yet now faces potential challenges to its affordability commitment. Chief Commercial Officer Jeremy Snyder highlighted during Slate's launch event that the auto industry prices were largely unaffordable for Americans and vowed to change this narrative, a promise echoed by CEO Chris Barman. Despite these obstacles, Slate aims to offer customizable vehicles, though the base model may see less interest in the absence of the expected federal incentive.

Slate Auto, the Jeff Bezos–backed EV startup, has removed its promise of an “under $20,000” electric pickup after the Trump administration ended the federal EV tax credit via the recently passed “Big Beautiful Bill.” The credit, worth $7,500, was set to expire on September 30, 2025, effectively increasing the post-incentive price of many electric vehicles. Without this subsidy, Slate’s base $25,000 truck no longer meets its previously advertised sub-$20,000 threshold.

Originally unveiled in April 2025, Slate’s minimalist pickup attracted over 100,000 refundable reservations thanks to its modular design, customizable features, and aggressive pricing strategy. However, the company has now updated its website to reflect a starting price in the “mid-$20,000s,” omitting the earlier reference to federal incentives. The production is still expected to begin in Indiana with deliveries starting in 2026.

The removal of the tax credit is expected to have wide-reaching effects on EV adoption. Analysts from the Harvard Salata Institute project a 15% reduction in EV sales by 2030 and a sharp increase in emissions due to the policy reversal. The move also undermines investor confidence and may slow innovation, especially among startups relying on price-sensitive customers.

Slate Auto’s focus remains on modularity and customization. Buyers can start with a basic two-seater pickup and add features such as vinyl wraps, utility modules, or an SUV conversion kit. However, with the loss of the tax credit, Slate may need to rely on state-level incentives or cost-saving production techniques to remain competitive in a market where average EV prices exceed $50,000.

The broader EV sector faces similar challenges. Major automakers are reconsidering their rollout strategies in the U.S., while consumers weigh the loss of federal subsidies. Slate’s pricing shift may be one of many such recalibrations as the industry adapts to a new political and economic reality.

Sources: Business Insider, The Verge, Reuters