Article: Why Slate's CEO Isn't Too Worried About Cheap Chinese EVs

[The Weatherman]

US automakers saw the profit margin on luxury SUVs, and thought that they could replace their entire lineups with them. It's not working out for them, lol.

You’re right, it’s not. And that is exactly the problem.

The industry knew 10 years ago that EVs were coming and failed to act and so here we are still waiting the technology to take off amongst our auto manufacturers while the rest of world is moving at lightning speed into the future. Yes for sure let’s just keep the doors closed and heads in the sand. That will surely workout great for the US.

Let’s stop talking out of both sides of mouths saying Capitalism and free market is the way and at the same time putting artificial controls on what type of vehicle is allowed to be sold here.

I’m all in on the Slate in part because it a Made in the USA product (that appears to be affordable). But that doesn’t mean I wouldn’t buy a Chinese built vehicle if it was better.

 

[smack daddy]

We'll soon see how saying "yes" works out for Canada.

Prime Minister Mark Carney is reopening Canada to Chinese-made EVs, lowering a 100 per cent tariff on imports, imposed in 2024, back to six per cent.​

[...]​

Up to 49,000 EVs a year from China will be allowed into Canada, initially, which Carney says is less than three per cent of the overall car market.​

​

That will increase to approximately 70,000 over five years.​

CBC: Chinese EVs are coming to Canada. How soon will they be here? How much will they cost?

At least they are affordable average price is 50k here I hate to say it but I would give them a look all I can do to afford to eat now

 

[AZFox]

At least they are affordable average price is 50k here

Higher for EVs.

(Not for long.)

 

[Luxrage]

I’m all in on the Slate in part because it a Made in the USA product (that appears to be affordable). But that doesn’t mean I wouldn’t buy a Chinese built vehicle if it was better.

I've been curious about how the GM Joint-venture EV Baojun Yep progress has been going. The only thing Slate has over almost every Chinese EV manufacturer is still the small two door pickup segment. This is the only one closest to it that isn't a cabover commercial truck. Brazil got a four door version as a Chevrolet Spark EUV Activ.

Looks like someone put a Bronco Sport in the oven and melted it IMHO.

If Suzuki somehow sold their Jimny pickup concept over here I'd be posting from one right now LOL.

 

[AZFox]

Kia launched this EV pickup based on the PV5 for $30,000

 

[smack daddy]

Chinese vehicles (be it gas, EV, or EREV) should NOT be allowed in the US. Period. For a variety of reasons (political, economic, strategic, etc.). Just say NO.

YMMV

Yea your right we need to just keep over paying for vehicles the free markets the big 3 want are foreign markets not the ones here I have news for them those markets are quickly disappearing due to this administration so they may want to figure out how to build better and cheaper. the vehicles made here are pure junk nope I will give them a look if they come here

 

[E90400K]

It strikes me kind of odd that Slate isn't concerned about Chinese EVs coming to the US, when everyone else is. BYD has already outsold Tesla worldwide, and would be a major threat to Rivian, Ford and GM sales here in the US. Just as Slate, they are priced way below other new EVs due to lower manufacturing costs, and access to lower cost battery supply chains.

Even if Slate is firmly established in the US if / when Chinese EVs arrive, everyone should be concerned about Chinese EVs coming to the US.

Her quote to the Chinese question:

"If the Chinese enter the market, then obviously, people have choice, and they can consider them versus consider us. We see, though, that there's a big population out there, and we like to think that the proposition that we will already have in the market will have taken a foothold. People will appreciate that it's American-made, that we've re-industrialized a U.S. factory."

I really think this sentiment is over emphasized and she is over-relying on it. If the American public really cared where the products they buy are made, they'd not go to Walmart and buy 95% of the crap they buy.

 

[E90400K]

I really like the barebones minimalist approach to Slate. But the “customable” part is a little over done I think. To make it an SUV I’m sure would put it over $30K. And other “customization” seems mostly cosmetic. Not like putting on a high performance muffler or a new carburetor or new rear end etx.

Agree. I think the SUV conversion is just not a good business strategy to rely on for large profits. A $30,000, 2-door small EV SUV with 150-mile range is just not going to be competitive in the market. I know there are members here that think I'm wrong about it, but it's just reality. 4-door SUVs are just more practical for their use case. It's not that manufacturers are forcing 4-doors on everyone, or the fuel consumption/footprint thing is forcing manufacturers to build larger vehicles, the market wants them.

Also, Slate's idea that the pickup will get passed down from father to daughter (when she goes off to college) and she'll want to convert it to an SUV 10 years later is just unrealistic from a automotive business standpoint. It means Slate will need to either carry the SUV conversion kit inventory for 10 years, or keep the tooling around and fill orders as they come in. Yup, the other manufacturers do not take this approach, but they do not take this approach because it is overly expensive to do so to carry parts inventory or tooling. Not many owners are willing to invest $5,000 in a 10-year-old vehicle with 120,000 miles on it.

The reason new vehicles are considered to be too expensive and not affordable is tied to wages not keeping up with inflation, not because cars have infotainment systems, electric windows, option packages, and paint. Take a real look at the price of vehicles from 20 years ago and extrapolate that pricing to today's products are nearly on par with pricing but offer better fuel efficiency, far more technology and safety than their predecessors.

 

[E90400K]

Yea your right, we need to just keep overpaying for vehicles. The free markets the big 3 want are foreign markets not the ones here; I have news for them, those markets are quickly disappearing due to this administration, so they may want to figure out how to build better and cheaper. The vehicles made here are pure junk; nope I will give them a look if they come here.

So, the American-made, American-supplier-base-parts, American-worker-built, Warsaw, Indiana Slate is going to somehow be better made than the 'Big-3"? How's that work?

And BTW, Chinese EVs are not now in the American market because of the last Administration (100% tariff), not the current Administration. Googleit.

 

[atx_ev]

It strikes me kind of odd that Slate isn't concerned about Chinese EVs coming to the US, when everyone else is. BYD has already outsold Tesla worldwide, and would be a major threat to Rivian, Ford and GM sales here in the US. Just as Slate, they are priced way below other new EVs due to lower manufacturing costs, and access to lower cost battery supply chains.

Even if Slate is firmly established in the US if / when Chinese EVs arrive, everyone should be concerned about Chinese EVs coming to the US.

Because there is no way the US govt will allow that. The chinese effective blocked american cars for decades

 

[ScooterAsheville]

The only thing I'd be worried about if I were the Slate CEO in 2026 is getting across the finish line. Meaning (1) building a vehicle, (2) selling the vehicle at scale, and (3) making a profit on that vehicle large enough to amortize a billion in startup costs and generate an operating profit as defined by standard accounting practices. Just doing those three things is a multi-year journery.

If you are crossing the Grand Canyon on a tightrope on a windy day in the rain, and there are tigers on the other side waiting to eat you, your first problem is still gettiing to the other side. You worry about the tigers if and when you make it to the other side.

And exactly what do you expect a CEO to say? "My company's business plan is hopeless and we all know we will go bankrupt, but we're happily collecting our paychecks as long as our investers are dumb enough to buy our sales pitch.". She's not gonna admit that. She will be crowing that the skies are sunny and blue right up until there is an article on CNBC, "Slate files for Chapter 11".

Here's a clue. Pretty much every professional observer of the automobile industry loves Slate's mission. And pretty much every one of them also says "there's no way they make it". And they follow that with, "but I hope I'm wrong".

So Slate's mission is to prove the naysayers wrong! Execute or fail.

Then, after Slate makes it across the valley of death, they get to experience the joys of competing in a ruthless industry that is capital intensive and margin poor.

 

[atx_ev]

The only thing I'd be worried about if I were the Slate CEO in 2026 is getting across the finish line. Meaning (1) building a vehicle, (2) selling the vehicle at scale, and (3) making a profit on that vehicle large enough to amortize a billion in startup costs and generate an operating profit as defined by standard accounting practices. Just doing those three things is a multi-year journery.

If you are crossing the Grand Canyon on a tightrope on a windy day in the rain, and there are tigers on the other side waiting to eat you, your first problem is still gettiing to the other side. You worry about the tigers if and when you make it to the other side.

And exactly what do you expect a CEO to say? "My company's business plan is hopeless and we all know we will go bankrupt, but we're happily collecting our paychecks as long as our investers are dumb enough to buy our sales pitch.". She's not gonna admit that. She will be crowing that the skies are sunny and blue right up until there is an article on CNBC, "Slate files for Chapter 11".

Here's a clue. Pretty much every professional observer of the automobile industry loves Slate's mission. And pretty much every one of them also says "there's no way they make it". And they follow that with, "but I hope I'm wrong".

So Slate's mission is to prove the naysayers wrong! Execute or fail.

Then, after Slate makes it across the valley of death, they get to experience the joys of competing in a ruthless industry that is capital intensive and margin poor.

the airline industry and car industry are two that I have never , and will never invest in.

 

[AZFox]

Slate is a new American company founded on a disruptive business model.
-- Chris Barman

Selling accessories replaces selling oil changes and other ICEV services the Slate won't need.

The $5,000USD SUV Kit will cost less than half of $5,000USD for them to produce. I would imagine if demand persists they'll keep producing it.

 

[AZFox]

A $30,000, 2-door small EV SUV with 150-mile range is just not going to be competitive in the market.

People keep comparing a new Slate SUV to new crossover, which is understandable.

I think they're expecting some people to start out with a pickup if that's all they can afford, then convert it to an SUV later when they can afford the upgrade.

 

[E90400K]

Because there is no way the US govt will allow that. The chinese effective blocked american cars for decades

Worse, they stole all the technology to build good cars by mandating partnerships with Chinese government-backed companies.