Anyone who’s tried to buy a new car recently knows that the market is becoming increasingly complicated, mostly due to rising prices.
Data from the consumer price index (CPI) shows that new car prices have surged 22% since 2019. Despite decreasing slightly in 2024, they are back to trending upward. Meanwhile, mounting supply chain pressure has pushed up some used car prices to more than $30,000 for the first time in two years.
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There’s no question that so far, 2025 is a seller’s market for the automotive industry. On top of that, President Donald Trump’s tariffs continue to spark high economic uncertainty.
The combination of high prices and a deteriorating labor market makes this an especially difficult time for automakers that primarily deal in expensive vehicles, such as Tesla (TSLA) . But a new company in the space recently revealed something positive for consumers.
Drivers who’ve attempted to trade in their Tesla Cybertrucks have reported significnatly value depreciation.Â
Image source: Brown/AFP via Getty Images
As car prices surge, a little-known startup may provide relief
Even as car prices rise, electric vehicle (EV) demand isn’t slowing down. While Industry leader Tesla TSLA has reported declining sales across multiple markets, a report from Cox Automotive shows that EV sales rose more than 11% year-over-year (YOY) in Q1 2025.
Related: Analyst sets eye-popping Tesla stock price target
Part of Tesla’s problem has been its inability to sell the Cybertruck, its futuristic electric truck that hasn’t been as popular as the company initially estimated. Photos have shown Cybertrucks sitting idly in parking lots across the country. Some drivers who did buy them have attempted to trade them in, despite high value depreciation.
For anyone seeking a fuel-efficient truck, though, a company described as the “Anti-Tesla” is working hard to provide a much more affordable alternative. A Jeff Bezos-backed startup called Slate Automotive is turning heads with its electric pickup trucks, described as “affordable, deeply customizable, and very analog” with no infotainment screen.
Slate’s small, sleek, traditional-looking trucks even come with manual windows, harkening back to a previous manufacturing era. In other words, its vehicles are a stark contrast to the highly priced, futuristic Tesla Cybertruck.
As The Street reports, so far, demand for these vehicles has been high, with the number of pre-reservations exceeding 100,000 as of early May. While those figures aren’t sales yet, they indicate that many consumers are interested in owning a Slate truck.
Now the company may be about to add even more prospective buyers to that list. Jeff Jablansky, Slate’s head of public relations, recently revealed that even without EV tax credits, the company’s new trucks will be priced in the “mid-$20,000s,” making them more affordable than many used vehicles.
“When [consumers] turn to something that is more affordable, it usually has higher miles, probably is older, the condition is not as great,” he states. “So we’re working in that framework.”
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Musk initially promised that the Cybertruck would cost only $40,000 before raising its price to $100,000. However, Jablansky adds that Slate won’t budge on keeping its prices below $30,000. He also believes that the company will be able to deliver on the range it has promised, something else that Tesla did not do.
Slate Automotive isn’t worried about tariffs, either
Trump’s tariffs have raised some concerning questions for U.S. automakers, as companies brace for rising production costs and supply-chain constraints. But since Slate’s trucks are being built at the company’s facility in Indiana, Jablansky sees the company as shielded from the impact of these policies.
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“The next year and a half, pretty much till delivery, we’re refining what we’ve done. We’re not making big engineering decisions — those have been done already. At this point, we’re testing, evaluating, refining,” he says.
If Slate is indeed more protected than its larger peers from the impact of Trump’s tariffs, the company will likely be able to deliver on its promise to keep prices low as its trucks move from the production line to the road.
Additionally, if new vehicle prices continue rising, consumer incentive to buy a new brand of truck for less money is likely to remain high. Slate’s strategy of creating an affordable electric truck for workers that reintroduces basic design features could be poised to pay off.Â
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