New Electric Truck Slate Threatens Tesla and Rivian’s Market Position

Investors in Tesla (NASDAQ: TSLA) and Rivian Automotive (NASDAQ: RIVN) should take note of the emerging Slate electric truck. This new competitor could impact sales for both industry giants.

Overview of Slate’s Ambitions

If you’re unfamiliar with Slate, it is an electric vehicle company still in start-up mode. Backed by wealthy investors, including billionaire Jeff Bezos, Slate has plans to begin deliveries of its electric truck sometime in late 2026. Pre-orders have recently started, requiring a refundable $50 deposit.

Initial market reaction suggests that Slate’s entry may already be affecting sales of both Tesla Cybertrucks and Rivian R1T and R1S vehicles.

Understanding Slate’s Offerings

Slate’s electric truck is marketed as “the most radically simple, wildly personalizable vehicle out there.” Designed in California and assembled in either Michigan or Indiana, it is a compact two-door pickup. The truck is about the same size as a standard Ford Ranger from the early 2000s but two feet shorter than a modern Ford Maverick hybrid pickup, making it smaller than both Tesla’s and Rivian’s vehicles.

Slate aims to attract buyers with a starting price “expected to be under $20,000 after federal incentives,” suggesting a base price of around $27,000, subtracting a federal tax credit of $7,500 for U.S.-built electric vehicles. In contrast, Tesla’s Cybertruck starts at $69,990, while Rivian’s R1T and R1S have base prices of $71,700 and $77,700, respectively. This significant price difference could draw buyers away from established brands.

All advertised prices are for the base models. Adding options raises the cost considerably. For example, while the Cybertruck has been described as costing over $100,000 in practice, Slate offers “nearly four dozen accessories” to customize the truck.

Personalizing the Slate Truck

To understand the pricing structure, I attempted to build a customized Slate truck online. I began with the “Blank Slate,” a basic model with a 150-mile electric range, and added only a spare tire carrier. I opted out of various upgrades, like larger tires and custom colors, to maintain a lower cost.

For important features, I chose traditional headlights and brake lights, as well as a rubber floor liner for easy maintenance. The stereo system interested me the most; Slate allows a “bring your own” option, which enables users to install a Bluetooth speaker themselves. This could appeal to a tech-savvy audience looking for flexibility.

Image source: Slate.

Final Thoughts on the Slate EV Truck

Ultimately, my goal was to build a functional electric truck at the lowest possible cost, which I believe is achievable with Slate’s offerings, potentially nearing the advertised price of under $20,000 after incentives.

The fact that deliveries could start in approximately 18 months suggests that Slate may capture a considerable market share, posing a threat to both Tesla and Rivian. For a potential cost saving of around 70%, it might be worth the wait for consumers.

Investment Considerations for Rivian Automotive

Before you decide to invest in Rivian Automotive, consider this:

Recent analyses have highlighted that Rivian did not make the cut for the top ten stocks recommended for investors right now. The focus is on identifying stocks that could offer substantial returns in the future.

As a benchmark, stocks like Netflix and Nvidia have previously delivered impressive returns to early investors, emphasizing the importance of careful stock selection.

Consider all factors and market changes before making any investment decisions.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.