Slate board member discusses the truck on Motoman podcast

[ScooterAsheville]

Not a review or test drive. A sit down interview with a board member.

Updated with summary:

I just finished watching it - yes, I posted it before I'd watched. I took away a few interesting things for those who don't watch...

• He self-contradicted. He said Slate will hold its value really well. And then he said they hope to sell today's $25,000 Slate for $20,000 in a few years as battery costs plummet. Does not compute.
• He said no leasing for at least a year, because they have to establish residual values before banks will finance leasing.
• He said the form factor allowed AWD, and he indirectly hinted at it down the road.
• He seemed very confident in meeting delivery timelines.
• I found him a bit slippery around the battery. I get it. It's probably not flattering if it's a Chinese battery system.
• He also talked about Ford's early interest in investing in Slate, which didn't happen.
• He talked about the $1.5 billion in capital raise.
• He talked about who Slate was created for (customer wise), and that very, very few of the initial 180,000 hand raisers are in that group. The current buyers are way better off than Slate's actual target audience.
• He clarified that the shipping price will be "significantly" less than Ford, which he stated was $2,200.

I thought it was educational. I liked the guy. He really brought home that Slate is all about bringing manufacturing back to the USA. I thought it was a positive interview, with a few gems that a careful listener could take away.

 

[diz]

Excellent interview! This really gets to the point of what Slate is all about. The interviewer asked excellent questions and the interviewee answered with no BS. This makes me feel better about my pre-order.

 

[ScooterAsheville]

I just finished watching it - yes, I posted it before I'd watched. I took away a few interesting things for those who don't watch...

• He self-contradicted. He said Slate will hold its value really well. And then he said they hope to sell today's $25,000 Slate for $20,000 in a few years as battery costs plummet. Does not compute.
• He said no leasing for at least a year, because they have to establish residual values before banks will finance leasing.
• He said the form factor allowed AWD, and he indirectly hinted at it down the road.
• He seemed very confident in meeting delivery timelines.
• I found him a bit slippery around the battery. I get it. It's probably not flattering if it's a Chinese battery system.
• He also talked about Ford's early interest in investing in Slate, which didn't happen.
• He talked about the $1.5 billion in capital raise.
• He talked about who Slate was created for (customer wise), and that very, very few of the initial 180,000 hand raisers are in that group. The current buyers are way better off than Slate's actual target audience.
• He clarified that the shipping price will be "significantly" less than Ford, which he stated was $2,200.

I thought it was educational. I liked the guy. He really brought home that Slate is all about bringing manufacturing back to the USA. I thought it was a positive interview, with a few gems that a careful listener could take away.

 

[Shrink36s]

Regarding Slate "holding it's value," I think you may have missed the point a little. Because of how it is built, and that it is an EV, it will last longer, remain in demand for a few reason, and thus your purchased vehicle will retain it's value over time. Meaning, it will not depreciate so much as other vehicles.
The comment about being $20,000 in the future is about the ability to get costs down, in particular, around battery development increasing and decreasing costs to the purchaser. In 5 years the Slate truck dropping to $20,000 new, will necessarily harm the used market, but by then, as an early adopter, your truck is going to be worth less than $20k anyway.
That computes for me, anyway.

 

[ScooterAsheville]

>> I think you may have missed the point a little.

Nope, not even a little. Let's say I'm buying a Slate in 2030. Hmm. I can buy a used Slate for $20,000. Or I can buy a new Slate for $20,000. Guess which one I'm going to buy!

BEVs (and I'm a huge BEV fanboy) typically depreciate like a rock. Let's all love the Slate. But let's stay rooted in the real world.

 

[Shrink36s]

>> I think you may have missed the point a little.

Nope, not even a little. Let's say I'm buying a Slate in 2030. Hmm. I can buy a used Slate for $20,000. Or I can buy a new Slate for $20,000. Guess which one I'm going to buy!

BEVs (and I'm a huge BEV fanboy) typically depreciate like a rock. Let's all love the Slate. But let's stay rooted in the real world.

Unless your 25,000 slate was bought in 2029, and barely used, there is no way anything purchased in 2027 will be worth 20K in 2030.

 

[Shrink36s]

I would also argue you're arguing two separate issues.
1- the depreciation of a purchased asset
2- the relationship between a purchased asset and its relationship with the cost of a new asset that decreases in cost.

It will suck to buy a $25k Slate in late 2029, and then watch as they price drops to $20k in 2030. That will affect the overall value of your newer used vehicle, and that sucks. That's just economics. That does not take away the slower depreciation of the Slate value long-term if it generally holds it's value. If you conflate the two of these, his argument seems insane, sure.
Take for example, let's say a 2027 ACME ICEV Truck is purchased for $25k along with a Slate Truck. In 2028 their values are $20k and $22k respectively. Then 2029 it is $18k and $20.5 respectively. The Slate truck's long-term value/depreciation is better than the ACME ICEV Truck. Now, 2030 happens, and the price drops, and now we're at $16.5 and $16 because of the price drop. That doesn't mean that the Slate's value now sucks. You still have to go further a few years to even out. Maybe by 2035 it's $7k and $9k respectively. I'd argue that the Slate was still the better value over 8 years.

 

[AZFox]

BEVs (and I'm a huge BEV fanboy) typically depreciate like a rock.

OTOH most BEVs start at much higher original prices, and with rebates.

 

[ScooterAsheville]

Well, we can agree to meet here again in 2030-ish and see how Slates are doing in resale value. Unill then, it's "he said, she said". Competing narratives about the future usually fall into the realm of fairy tales anyway, on both sides.

 

[Shrink36s]

I wasn't projecting a narrative about the value if the Slate. I was merely providing and example of my point about depreciation vs value in relationship to a new car price decrease. I have no idea how it will hold it's value. I will be watching, though, whether I own one or not.

 

[tubes]

As for the buyers being more well off than the target... well, you have the apartment dweller issue with EVs. This will continue to too improve slowly over time, but right now it is still a significant impediment.

 

[ElectricShitbox]

As for the buyers being more well off than the target... well, you have the apartment dweller issue with EVs. This will continue to too improve slowly over time, but right now it is still a significant impediment.

On this note, the charge port is on the wrong side for curbside charging.

 

[P. Regent]

I assume he meant 20,000 "2026 dollars." How many "2030 dollars" that will be is yet to be known.

 

[AZFox]

I assume he meant 20,000 "2026 dollars." How many "2030 dollars" that will be is yet to be known.

 

[PNWEng]

Calling it a Jeff Bezos startup is not accurate. Jeff Bezos did not start it, but became an early investor. So he has a stake in the company but is not involved in its day-to-day operation.