Jeff Bezos is reportedly backing a Michigan-based all-electric mobility startup, Slate Auto, with a goal of developing a cheap single-cab EV truck to take on the likes of Tesla Inc. (NASDAQ:TSLA) and Rivian Automotive Inc. (NASDAQ:RIVN).

What happened: A report published by TechCrunch shared that the company is backed by Amazon.com Inc. (NASDAQ:AMZN) founder Jeff Bezos. The report said that Slate Auto has brought in people from the likes of Ford Motor Co. (NYSE:F), Harley-Davidson Inc. (NYSE:HOG), and General Motors Co. (NYSE:GM).

Slate Auto has set a target of developing a “cheap” $25,000 single-cab EV truck, and plans to enter the production phase by late 2026.

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As news of the Bezos-backed startup hit the wires, a post on social media platform Reddit in the r/whatisthiscar subreddit surfaced, which showcased what looked like a small EV truck in dark grey being transported on a flatbed truck. The truck features round headlights, upright B-pillars, and steel wheels.

What is this car?
byu/discostranger09 inwhatisthiscar

It was later confirmed that the truck was Slate Auto's concept car. According to the report, the company is looking to manufacture its vehicles in a plant in Indianapolis, Indiana. The design of Slate Auto's concept car is somewhat reminiscent of the old-school Ford Ranger.

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Why it matters: The news comes in at a time when the US auto sector is dealing with a 25% import tariff levied by the Donald Trump administration, much to the criticism of stakeholders within the auto industry.

Goldman Sachs analyst Mark Delaney forecasts a difficult period for the auto sector in the U.S. due to the tariffs. Delaney pointed out that Rivian may face risks from reduced U.S. EV policy support.

EV trucks in the U.S. from the likes of Tesla, GM, Ford, and Rivian currently retail in the approximate price range of $47,000 – $105,000. However, a cheap EV truck would certainly broaden the sector's appeal and could potentially disrupt the segment as well.

EV companies are looking to release cheaper variants of their EV trucks in a bid to broaden the product’s appeal, with Tesla most recently releasing an RWD, long-range variant of its Cybertruck.

Read Next:

• How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Photo courtesy: Shutterstock

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This article Jeff Bezos-Backed Slate Auto To Take On Elon Musk's Tesla, Rivian With Budget EV Pickup: Report originally appeared on Benzinga.com