Bezos-Backed EV Startup Raises $700M and Expects Quick Road to Profitability
Electric vehicle startup Slate, which is backed by investors like Amazon (AMZN) Chairman Jeff Bezos and Mark Walter from Guggenheim, is preparing to raise more money with a new Series C funding round. The company has already completed its Series A and B rounds and says it has raised nearly $700 million so far. This is much higher than the $110 million previously reported. CEO Chris Barman told Yahoo Finance that starting a car company from scratch takes a lot of money, and while Slate has raised a lot already, more will likely be needed.
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Slate plans to build its EVs at a former printing plant in Warsaw, Indiana, and aims to reach a production rate of 150,000 vehicles per year by late 2027. It also expects cars to hit the road by late 2026. Interestingly, the company’s approach is different from traditional automakers. Indeed, it uses pre-made slate-gray composite parts, so it doesn’t need a stamping facility or a paint shop. This helps cut costs and is part of why Slate believes it can become profitable shortly after production begins—something that rivals like Rivian (RIVN) and Lucid (LCID) are still working toward.
The EV will be a compact pickup truck priced in the mid-$20,000s, with two battery options: one offering about 150 miles of range and the other about 240 miles. Buyers will be able to customize the truck with vinyl wraps, wheel covers, or even a roof to turn it into an SUV. However, those who want a simple, low-cost truck can skip the add-ons. The vehicle will mostly use American-made parts, which will help Slate avoid tariffs and keep its supply chain based in the U.S.
Which EV Stock Is the Better Buy?
Turning to Wall Street, out of the two EV stocks mentioned above, analysts think that both LCID and RIVN are overpriced. Indeed, Lucid’s average price target of $2.44 per share implies 1.4% downside risk, while Rivian’s $13.80 average price target equates to a 2.9% decline.
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