Why Doug DeMuro Thinks the Slate Truck Will Fail

[zipn]

I think he is right in that most people want 4 doors, I think he is wrong in thinking there will be no demand for an inexpensive 2 door truck. I won't buy a Maverick because it is not an EV. I won't buy any of the current EV pick-ups because they are too big. Keep in mind the compact trucks were actually killed by the EPA not the lack of demand. EPA structured their regulations by producing a chart of allowable emissions based on the product of the wheelbase and the wheel track. Small truck manufacturers quickly learned it was much easier to make the truck a little bigger than to invest in the technology to clean the emissions. Every year the EPA tightened the regulations which forced the automakers to make the vehicle a little bigger so they could meet a more lax EPA regulation. When the wheelbases start getting longer you got to add more bed or more cab or both. Trucks the size of the Slate were very popular for commercial applications prior to EPA intervention. Remember driving by Autozones and Advance Auto Parts Stores and seeing 2 white regular cab Rangers in the parking lot that they were using for delivering auto parts to repair shops? I have my reservation and hope they are getting enough interest to bring it to market. When I first saw the spy photos, I thought as long as they have a frunk under that hood to address the primary drawback of a small regular cab truck they will have a winner.

The chicken tax killed the small trucks, where the big trucks are profit making machines for the big 3☺

 

[zipn]

Fwiw we just purchased a 25 maverick hybrid AWD. It tows 4000 lbs, has 4 doors, and gets 40+ mpg in the city and mid 30s on the highway. I have a reservation for a slate. I don’t need 2 pickups, but what I want is a small around town EV with room for me and my wife and a way to haul everything from groceries to (unfortunately) a wheel chair or scooter.

The Slate won’t replace the Maverick. It will compliment it (plan on adding the topper to it).

I wouldn’t recommend the slate (or ANY EV) to anyone who has only 1 car. A true EREV with 100 battery range is the sweet spot but they don’t exist yet ( rouge is coming, as is scout and maybe ford and ram too). For use lucky enough to have a place to plug in at home and a ICE vehicle for road trips the slate makes a great around town car, commuter car. There will be other low cost EVs but the DIY nature of the slate makes it compelling.

 

[cvollers]

It's though, more like 140,000 out of 13M new cars sold annually. Still a small percentage, but is it an underserved market, or a market that may not exist? Which is why the majors haven't created it.

But I'm in too, because a Slate fits my needs perfectly.

If you have enough people say it fits their needs perfectly, then you have a market. Just because it hasn't been identified yet by Big Auto (or Doug Demuro) doesn't mean it doesn't exist.

 

[Letas]

A point doug makes that does resonate is about price vs value.

The price point is attractive, undoubtedly. But stripping down a car past what is “accepted”, and selling it at this price point does not offer value to a lot of consumers.

 

[Letas]

If you have enough people say it fits their needs perfectly, then you have a market. Just because it hasn't been identified yet by Big Auto (or Doug Demuro) doesn't mean it doesn't exist.

A phrase I see here a lot is “Slate did their research”. But I think it is silly to think Slate somehow did more research than our current automobile market.

 

[cvollers]

A point doug makes that does resonate is about price vs value.

The price point is attractive, undoubtedly. But stripping down a car past what is “accepted”, and selling it at this price point does not offer value to a lot of consumers.

Good point, however I think people define personal value differently. What seems lacking in value to Doug, might offer plenty of value to someone else. That someone else is the target for the Slate.

 

[Letas]

Good point, however I think people define personal value differently. What seems lacking in value to Doug, might offer plenty of value to someone else. That someone else is the target for the Slate.

For sure. Something is worth what people will pay!
I personally get caught up in the eternal battle, knowing I’ll likely need to spend thousands of dollars to make this car “mine”. Impossible to speculate on value until we get pricing for mods too

 

[cvollers]

A phrase I see here a lot is “Slate did their research”. But I think it is silly to think Slate somehow did more research than our current automobile market.

When you are offering slight upgrades on existing products, how much research do you think goes into that kind of thinking? Slate is questioning the whole direction of the auto industry and to do that requires a HUGE amount of research to back up that level of bravery. Jeff Bezos is a very smart guy and no way is he going to buck Big Auto trends without knowing that the company he is backing did their research.

 

[Letas]

When you are offering slight upgrades on existing products, how much research do you think goes into that kind of thinking? Slate is questioning the whole direction of the auto industry and to do that requires a HUGE amount of research to back up that level of bravery. Jeff Bezos is a very smart guy and no way is he going to buck Big Auto trends without knowing that the company he is backing did their research.

These companies have years of sales data to run off of. For sure could they be complacent. But it is much easier for an established company to use internal data and run a trial.

As for the bezos claim, he surely is. But I think his name is carrying more weight than it is worth. His investments cast a WIDE net, many of which are undisclosed. Surely a vote of confidence having his investment, but not much more

 

[cvollers]

For sure. Something is worth what people will pay!
I personally get caught up in the eternal battle, knowing I’ll likely need to spend thousands of dollars to make this car “mine”. Impossible to speculate on value until we get pricing for mods too

I disagree. The base Slate as delivered offers tremendous value for the right buyer. The price is low. It transports people safely on the highway. It includes airbags and cruise control. It is low cost to maintain. Its fuel is lower cost than gas. It will carry a stack of 4x8 sheets. Its easy to park. It can be transformed into a SUV or small cargo van. It can be easily customized. If you don't like the color you chose, you can easily change it. Is it feature-rich and full of tech like a Rivian? No...on purpose. A Rivian buyer is not their target. Heck, an Ioniq 5 buyer is not their target.

Doug seems to think that auto companies (even start-ups) should be able to offer all these features and technology while also keeping prices low. Where is the data to support that position? Rivian is learning how hard it is with high prices...they are way underwater with little hope of turning a profit anytime soon.

 

[cvollers]

These companies have years of sales data to run off of. For sure could they be complacent. But it is much easier for an established company to use internal data and run a trial.

As for the bezos claim, he surely is. But I think his name is carrying more weight than it is worth. His investments cast a WIDE net, many of which are undisclosed. Surely a vote of confidence having his investment, but not much more

My point is that despite his wealth, Jeff Bezos is careful with his money. If you know anything about how Amazon started and the ritual of employees building their own desks at the Beacon Hill HQ, you'd agree with me. He's tight with his money.

 

[Letas]

My point is that despite his wealth, Jeff Bezos is careful with his money. If you know anything about how Amazon started and the ritual of employees building their own desks at the Beacon Hill HQ, you'd agree with me. He's tight with his money.

For sure. I used to work at Amazon, I know it well.
Digging into his portfolio… lots of winners there. Hope Slate is on that list in a few years!

 

[zipn]

Other car companies spend a fortune on home grown yet crappy Infotainment systems. Slate is avoiding that along with the headaches of an epa friendly paint booth and changing pant production runs. Really simple manufacturing with I think 1/4 of the discrete parts usually required to build an auto. They may be in the black sooner than expected.

 

[slateya]

Doug can eat 100,000 eggs as of yesterday. There is a market.

 

[GaRailroader]

Doug can eat 100,000 eggs as of yesterday. There is a market.

Was there an announcement yesterday that I am not aware of? Perhaps 100,000 pre-orders already?