Dive Brief:
- The Michigan Strategic Fund Board, which promotes economic development to spur business growth and job creation in the state, has approved a $5 million performance-based grant to electric vehicle startup Slate Auto, according to a May 19 press release.
- With a total capital investment of $10.4 million, Slate Auto will expand its headquarters in Troy, Michigan — leading to at least 392 new jobs across engineering, design and corporate over the next five years.
- The investment in Michigan is part of Slate Auto’s initiative to strengthen its innovation and manufacturing capabilities in the U.S., with a focus on “sustainable product research and development,” per the release.
Dive Insight:
Slate Auto has received backing from Amazon founder Jeff Bezos and Guggenheim Partners CEO Mark Walter, among other investors. It’s currently preparing to launch its first vehicle, a bare-bones, low-priced electric truck that will be highly customizable, allowing customers to add new features after purchase. Deliveries of the truck are slated to begin later this year.
Slate chose to further invest in Michigan due to the collaboration opportunities with other Metro Detroit-based companies working in the mobility and electric vehicle sectors, per the release.
The company established its Troy, Michigan headquarters in 2022, the year it was founded, and currently employs roughly 325 workers in the state, according to the release.
“We thank Governor Whitmer and the Michigan Economic Development Corporation for supporting Slate’s growth in Michigan and acknowledging the importance of developing and producing affordable vehicles,” said Slate CEO Peter Faricy in a statement. “Slate will benefit from the impressive talent pool and innovative ecosystem that has long been a tradition in the state of Michigan.”
Slate said it received over 160,000 reservations in the form of non-binding, refundable $50 deposits to reserve a spot in the preorder queue, which it plans to open next month. The company said its “blank” Slate truck will cost in the mid-$20,000s when it goes on sale, making it one the lowest-priced EVs for sale in the U.S., although official pricing has not yet been released.
Slate will build its electric truck at its factory in Warsaw, Indiana. The company expects to invest about $400 million in the facility, creating over 2,000 jobs.
Last month, Slate Auto announced it closed on a $650 million Series C funding round led by TWG Global, bringing its total investments to about $1.4 billion to date as it looks to complete with Rivian, Tesla and other EV makers in a challenging market that’s been upended by tariffs, supply chain challenges and consumer affordability concerns.
