Latest news with #affordableEV
Fast Company
27-05-2025
- Automotive
- Fast Company
This company wants its $20K EV to generate buzz and sales. Will there be enough stations to charge them?
Last month in Los Angeles electric vehicle startup Slate Auto revealed its low-cost, American-made electric truck, with hopes to become the holy grail the auto industry needs to make EVs more affordable and company expects its trucks' sales price to be less than $20,000 with $7,500 U.S. federal tax incentives taken into consideration. While markets like Europe and China are seeing moderate to accelerated sales growth in their electric vehicle markets, the transition to EVs is slower in the United States. According to McKinsey's latest annual survey, 12% of respondents in the U.S. said they intend their next car purchase to be a battery electric vehicle. However, the rate of EV adoption depends on where consumers are located in the country with urban areas seeing rates twice as much as rural areas. That data may indicate that adoption rates in the U.S. will remain slow, but Slate Auto chief commercial officer Jeremy Snyder is hoping the company can build demand by focusing on accessibility. 'Slate is approaching the automobile differently,' Snyder says. 'We are not competing with the existing market so I think it is creating a new one. People are going to want this one for the price, for the personalization.' According to the company, Slate Auto has raised its Series A and Series B, amounting to almost $700 million in funding. The company plans to produce up to 150,000 vehicles annually by the end of 2027—which would be less than 10% of Tesla's 2024 deliveries, but roughly three times what luxe EV brand Rivian expects to deliver this year. Less Money, more problems? Currently, the average transaction price of an electric car in the U.S. is $59,205. Much of the market is dominated by high-dollar makers like Tesla, Rivian, and Polestar, which are likely out of reach for hourly wage workers—Slate Auto's target audience. 'When you talk about target demographics for current automotive, everybody is going towards the top 20%, 30% of the market,' Snyder says. 'We don't need to focus there. We need to focus [on] the folks that don't have a lot of product choice. Those are the folks that we are really wanting to provide a safe, reliable, and affordable vehicle to.' Since its reveal event, a recent report indicates that the company has garnered over 100,000 refundable reservations ahead of the truck's availability, which is expected by the last quarter of 2026. Infrastructure issues Though Slate's early numbers suggest an appetite for low-cost EVs, that hints at a need for more robust charging infrastructure, according to Philipp Kampshoff, McKinsey senior partner and leader of the consultancy's automotive practice. ' The moment you tap into the volume segment, you will also tap into a part of the consumer population that is going to be more reliant on public charging,' Kampshoff says. 'Right now, most of the battery electric vehicle buyers are more affluent. They tend to have their own houses and they can charge at home. The moment you go more and more in the volume segment, [you] will have people that don't own their houses and may be renting.' McKinsey's summer 2024 report on EV buying trends, found only 9% of respondents felt existing charging infrastructure was sufficient. Kampshoff explains that particularly in the U.S., there is a 'chicken and egg' problem when it comes to public charging infrastructure. Some consumers are hesitant to purchase an EV because public charging stations are either not visible or do not exist. On the other hand, charging infrastructure players may not want to invest in establishing charging stations because of low EV ownership. Based on lessons from other regions, potential solutions to this problem could center on government incentives beyond subsidies. For instance, in China, some nonmonetary incentives include preferential parking for EVdrivers. Additionally, increasing awareness of existing public charging stations could also help resolve the issue. 'When people are worried because there's not enough charging infrastructure, you don't take that worry away unless you know they see it,' Kampshoff says. ' If you're driving down a highway, it's very easy to see a gas station. But, there's no signage for EV stations in most states.'
Yahoo
25-05-2025
- Automotive
- Yahoo
Tesla's New $30K Car vs. 3 Other Entry-Level EVs: Which Is Best?
Tesla has long promised a more affordable electric vehicle, and it looks like the time is finally here. According to Car & Driver, Tesla will begin producing its lower-cost EV in June. As is often the case with Tesla, specific details are hard to come by, but the company did say that the new model will 'resemble in form and shape the cars that we currently make.' In other words, the new vehicle might simply be a stripped-down version of the company's existing vehicles, with less luxurious features in exchange for the lower price. Here's what industry experts are saying about what a potential low-cost Tesla EV might include, along with a look at how it might match up with some of its competitors. Discover Next: Be Aware: As the new Tesla has not yet begun production, there are no real-world specs available on it just yet. But industry experts and trade publications have projections as to what this car may offer, based on a combination of inside information and speculation. Car & Driver envisions the entry-level vehicle as essentially being a stripped-down Model Y, which would help keep costs down. This is based in part on the comments of Tesla's CFO himself, Vaibhav Taneja, who said that the new model would be produced using the company's existing lines. As Taneja said, 'Using our existing lines, there's always limitations as to how many different form factors you can bring. So, that's the way you should think about it.' That's essentially a direct indication from the company's own CFO that the new vehicle would be based in large part on existing models. The car reportedly has a target price of less than $30,000, which would make it much less expensive than any other vehicle in the Tesla lineup. However, as Car & Driver notes, this price might be including the EV tax credit. Industry publications Inside EVs and Electrek have some insight as to the ways that Tesla can save money with the new entry-level model. Here are some concessions that may have to be made in order to keep the price point low: Cloth seats instead of traditional Tesla vegan leather No heated seats or steering wheel Single-color lighting system rather than multi-color No back-seat screen for passengers Acoustic glass may potentially only be on the front windows While these are best-guesses, they are all ways to save money, so at least some of them are likely to come to fruition in the entry-level Tesla vehicle. Check Out: Tesla isn't the first or only EV maker with a vehicle in the $30,000 price range. As Tesla has some level of luxury cache, some buyers might not want to buy a 'cut-rate' Tesla and may prefer other vehicles. Here are the top competitors, according to Car & Driver. Starting Price: $29,280 The Nissan Leaf is currently the only EV available for a starting price of under $30,000, and that's likely to remain the case even if/when Tesla rolls out its new entry-level model. Although the range on the Leaf is limited, at about 149 miles, it's praised for its roomy cabin and comfortable seats. Starting Price: $34,425 The Kona is a bit of a step up in price but still falls well below the average cost for a new car. Range is better than the Leaf, at over 200 miles, and Car & Driver praises it for its large cargo capacity and comfortable ride quality. Starting Price: $34,995 The Chevy Equinox EV offers a solid range of 319 miles, well above its other lower-priced competitors. Its interior was dubbed 'modern and comfortable' by Car & Driver. Though it's an American brand, most of the assembly for the Chevy Equinox EV takes place in Canada. Although the excitement around a low-cost Tesla is palpable, the question buyers have to ask is whether or not the car will be worth it. Will all the magical things that make a Tesla a Tesla be stripped away to reach that price point? If so, there are plenty of other worthwhile competitors in the space to consider. More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper Class in 2025 10 Cars That Outlast the Average Vehicle This article originally appeared on Tesla's New $30K Car vs. 3 Other Entry-Level EVs: Which Is Best? Sign in to access your portfolio
Motor Trend
14-05-2025
- Automotive
- Motor Trend
Meet the Woman Behind the $27,000 Electric Pickup Everyone's Talking About
For Tisha Johnson, head of design at Slate, the startup EV maker backed by Amazon's Jeff Bezos and the owners of the Cadillac F1 team, among others, the no-frills pickup truck designed under her direction has been a long time coming. Johnson, whose design career includes two stints at Volvo totaling almost 17 years, described the need for a similarly functional and affordable vehicle in her final year thesis at California's Art Center College of Design in 1999. 'I really believed that as a designer I should be impacting society with the skills that I have available,' Johnson said at the recent Car Design Event in Munich, Germany. 'There were people who 25 years ago really couldn't get ahold of reliable personal transportation, and it was really upsetting to me.' The Slate, which with the Federal EV tax credit applied could cost as little as $20,000 for most buyers, addresses what Johnson sees as a problem that has only gotten worse over the past quarter century: 'Most folks cannot afford to buy a new car. In fact, cars have gotten so expensive that most households spending responsibly cannot afford a used car.' The customer Johnson had in mind for her affordable vehicle back in 1999 was a single mom. 'I had her profile exactly [in my head],' Johnson says. 'It was a struggle for her to really be able to take care of basics.' At Volvo—her design credits include the interior design of the 2005 Volvo 3CC 'sustainable mobility' concept car and the production interiors of the S90 sedan and V90 wagon—Johnson says she came to realize that while she was working for an automaker that, more than most, was committed to equity and concern for people, she was actively pushing the brand up and away from accessibility as it moved into the premium vehicle segment. Johnson calls the Slate truck a radically affordable vehicle that is also highly desirable. To square that circle, the Slate was deliberately designed from the wheels up to be infinitely customizable by its owners. Yes, its basic format, single factory color, and simple spec makes the Slate much less expensive to build. But it's also been deliberately designed as a blank, ahem, slate upon which owners can bring out their own personality. For example, the Slate's single-color injection molded body panels not only eliminate the need for an expensive paint shop in the factory, but, says Johnson, they make it simple to cloak the vehicle in colorful wraps. 'I learned how to wrap a car in the process of designing the vehicle; in fact, our whole team did,' Johnson says. 'The coach lines on the surfaces are anchor points that make it easy to wrap. It takes minutes to get to whatever color you can imagine on it.' The Slate, which also can be configured by way of a factory kit as a low-cost SUV, even allows owners to commit what for most automotive marketers is the ultimate heresy: remove its branding. The Slate branded faceplate at the front of the truck has fasteners and can be removed and replaced with one displaying any name customers want, created by an embossing kit that Slate will sell you. 'When the truck rolls off the line, it becomes infinitely personal,' Johnson says. 'Our North Star was creating a vehicle that people would love.' For decades the auto industry has followed what is now a predictable path, launching new models that are bigger, bolder, and more lavishly equipped than their predecessors to justify their ever-increasing prices. The uncompromisingly simple Slate pickup kicks that tired orthodoxy into the weeds. 'We thought a lot about the people who can't afford cars,' says Trisha Johnson, 'and we wanted to make sure that the vehicle itself left people with a sense of pride and dignity.'
Forbes
11-05-2025
- Automotive
- Forbes
Tesla Stock Rides On Future Affordable Models And Rumored Model Q
Tesla is set to make a major announcement about an affordable vehicle in June. That, more than Robotaxi, may be the biggest driver of Tesla's stock price. Despite all the Tesla analyst chatter about Full Self Driving, AI and the Tesla Robotaxi launch in June, the average EV consumer isn't that interested in autonomous vehicles. At least not yet. Numerous reports over the last few years show that autonomy just isn't an important factor when buying a car. A February survey from AAA on autonomous vehicles, titled 'AAA: Fear in Self-Driving Vehicles Persists' shows only 13% of U.S. drivers would trust riding in self-driving vehicles. On the other hand, consumers desperately want cheaper EVs. In case you haven't noticed, EVs keep getting more expensive. In March, the average transaction price for new electric vehicles was $59,205, a 3.8% increase from the previous month and a 4.4% increase from the previous year, according to Cox Automotive. The last thing the EV consumer needs is another pricey EV loaded with AI and priced way out of their reach. Especially, as consumers rethink the whole EV thing in the face of obstacles like public charging. 'We're still focused on bringing cheaper models to market soon,' said Tesla chief financial officer Vaibhav Taneja during the first quarter earnings conference call on April 22. 'The start of production is still planned for June,' he said. If that pans out, something along the lines of a $30,000 Tesla EV – dubbed the Model Q by Deutsche Bank - would get consumers' attention, despite pockets of anti-Elon sentiment. The upcoming affordable model is expected to use a mixed-platform approach, combining components from Tesla's next-generation platform and existing Model 3/Y architecture, allowing production on current assembly lines in Fremont, Calif., Austin, Texas, and potentially Shanghai and Berlin. This strategy reduces costs and accelerates the rollout compared to a fully new platform. The new affordable Tesla is expected to be autonomous and FSD compliant. Interest in the Model 3 – Tesla's cheapest EV – is waning. Deliveries of the Model 3 were 52,520 in Q1 of this year, a drop from 57,928 in Q4, according to estimates by Cox Automotive. And it's not clear if the refreshed 'Juniper' Model Y will maintain its momentum as the best selling EV in the U.S. as consumers look to the crush of new EV offerings from competing brands like Cadillac, Chevy, and Honda. 'We have seen a decline in several metrics for Tesla in recent months,' said Tom Libby, an analyst at S&P Global Mobility, in an email. 'The brand's loyalty has declined, its conquest/defection ratio has declined (households coming into Tesla from another brand divided by households defecting from Tesla to another brand), and the percent of Tesla households returning to market and buying another EV that acquire another Tesla has declined as well,' he said. A new Tesla nameplate could help to jump start new sales, particularly in light of Tesla's Chief Designer, Franz von Holzhausen, design philosophy that avoids a "cheap" feel and aims to deliver more value than the price suggests. But it's not clear how focused Tesla is on simply bringing out a cheaper EV. 'While many investors would rather have Tesla keep their head down and just keep making cheaper EVs, this is not at all the strategy we think Tesla will pursue going forward,' said Morgan Stanley in an April 22 research note.
