US risks falling behind in global EV transition as Chinese cars undercut domestic market, analysts say

Bezos-backed Slate Auto launches $24,950 EV pickup with hand-crank windows

Early this month, a new Detroit-based electric vehicle startup called Slate Auto hit the U.S. market with a base price of $24,950 for a two-seat pickup truck — close to half the average price of a new vehicle in the country, which currently stands at $48,402 according to Edmunds. The Jeff Bezos-backed company offers what industry observers describe as a no-frills vehicle: hand-crank windows, no stereo, no speakers, no ambient lighting, a smartphone mount instead of a navigation system, and standard cruise control.

The Slate truck has an estimated 205 miles of range and measures 14.5 feet long — shorter than a Toyota Corolla, according to the company. Customers can purchase add-ons including a stereo, a key fob, and an accessory that converts the two-seat cab into a five-seat SUV. The company also offers 3D-printed accessories and vinyl wraps instead of paint, which eliminates the need for a paint shop at its plant.

Jessica Caldwell, executive director of insights at Edmunds, compared the Slate approach to budget airline Ryanair — a cheap ticket to physically get on a plane, but add-ons quickly push the price upward. “I don’t think they’re going for the stripped-down version because the features, amenities, and technologies — those are part of why prices in the US are so inflated, because Americans wanted all the additions,” Caldwell said.

The U.S. market for affordable new cars has shrunk dramatically. According to an Edmunds analysis, fewer than 5% of new vehicles sold in the U.S. last year cost $25,000 or less, down from nearly 21% in 2019. During that same period, the average new vehicle transaction price rose by roughly $11,000 to $48,402. Slate is one of only eight new U.S. models currently available under $25,000.

By contrast, according to industry analyst firm DCar, more than 200 electric and hybrid vehicle models are available in China in the same price range. Chinese automakers such as BYD offer vehicles loaded with driver-assist features and a 314-mile range at prices below $15,000 — roughly one-third the price of Slate’s base model. Chinese cars cannot be sold in the United States, but they accounted for about 20% of new cars sold in December in the United Kingdom and 6.4% of European Union sales despite a new tariff program.

Dan Krassner, executive director of the American EVs Jobs Alliance, a nonprofit that works to break down the political divide over electric vehicles, said the stakes are high. “We can’t hand the whole auto industry to Beijing,” Krassner said. “EVs are the big manufacturing prize of the century, and America has to get back in the race.”

The U.S. industry’s shift is complicated by both consumer preferences and political ideology, according to analysts. American buyers have gravitated toward larger vehicles with extensive features, and Caldwell noted that the U.S. has a deeply rooted car culture that values big, powerful, gas-powered vehicles. Emerging markets in China, by contrast, are full of first-time car buyers more open to tiny, practical, inexpensive vehicles. European consumers are accustomed to smaller cars.

Globally, the trend toward affordable EVs is accelerating. BYD, which already produces more electric vehicles than Tesla, aims to become the world’s biggest automaker within five years. Despite the barriers in the U.S. market, Krassner expressed optimism that a pivot toward lower price points could succeed. “The price point is really attractive, and we hope Americans see that it matches their budgets and also shows automakers that there is hunger for cheaper electric vehicles,” he said.