Large electric pickups are facing significant challenges. The Cybertruck has underperformed, Stellantis recently scrapped the Ram 1500 EV, and even Ford’s once-promising F-150 Lightning has seen its sales slip.
Yet, America’s passion for trucks remains strong. Could the secret to winning over buyers to electric trucks be to make them much smaller?
That’s the gamble California startup Telo has been taking since it launched in 2022. The company has developed a compact pickup called the MT1, which starts at a not-so-modest price of about $41,000.
Now, investors are buying into this vision: On Tuesday, Telo revealed it had secured $20 million in Series A funding. The round was jointly led by designer Yves Béhar and Tesla co-founder Marc Tarpenning (both also Telo co-founders), with additional backing from Salesforce CEO Marc Benioff and early-stage investors such as TO VC, E12 Ventures, and Neo.
In the automotive industry, $20 million is a relatively small sum. For comparison, Slate Auto, which is also working on a unique small electric pickup, has raised over $700 million so far. Other startups like Fisker Inc., Canoo, and Lordstown Motors also raised hundreds of millions before ultimately failing.
Telo, however, is aiming lower and focusing more sharply than those companies.
“We’re laser-focused on trucks designed for city centers,” co-founder and CEO Jason Marks explained to TechCrunch during a video call from Telo’s 10,000-square-foot facility in San Carlos — which happens to be next to Tesla’s original headquarters.
Although Telo may eventually explore other markets — Marks mentioned that some small-scale farmers have shown interest — the company’s primary target is urban areas. Marks said his own frustration with finding parking in San Francisco has kept his attention firmly on city use cases.
Telo isn’t aiming to produce hundreds of thousands of MT1s. Instead, there are about 12,000 pre-orders, and Marks said the initial plan is to manufacture roughly 5,000 trucks per year through contract manufacturing.
“Our philosophy is all about reaching profitability per vehicle as quickly as we can,” he said. “That sets us apart from other automakers who announce they need a billion dollars just to start production.”
The Series A investment will be used to finalize the production-ready MT1, ensure it meets U.S. safety regulations, and complete crash testing. Marks emphasized the importance of crash testing, as the MT1’s short front end has led to many questions about its safety.
Telo aims to deliver the first MT1 units by late 2026.
To maximize the impact of its funding, Marks said Telo will remain “as lean as we possibly can.” This means keeping the core team to about 25 people for now, while relying on consultants and contractors — many of whom have longstanding ties to Tarpenning.
Bringing in outside expertise is getting another boost with this funding round, as Marks noted that Telo’s Series A included angel investors and small companies from across the EV sector. “It’s an amazing network that’s eager to see new mobility concepts thrive,” he said.
The MT1 is an ambitious concept, but it’s not just about being small. Marks said Telo has worked hard to ensure the MT1 is practical, focusing on the idea of “performance per square foot.”
“We’re the only truck that fits five people and has a five-foot bed,” he said. This means that, despite its compact size, the Telo truck offers about half a foot more bed space than some rivals, such as the all-electric Rivian R1T and the budget-friendly Ford Maverick, which both have 4.5-foot beds.
Perhaps the MT1’s most impressive feature is its range. Marks is confident the truck will achieve around 350 miles on a full charge, putting it among the top-performing EVs available. This not only allows for longer trips, but also reduces the need for frequent charging — a big plus for urban customers.
Marks said Telo reached this range through a mix of factors that sometimes work against each other. The MT1’s compact design helps keep weight down, improving efficiency. However, fitting a 106kWh battery into such a small frame was a challenge, as they didn’t want the MT1 to be little more than a battery with seats.
Marks didn’t share many specifics, as Telo’s battery patents are still in process. But he explained that the MT1 sacrifices some performance, such as rapid acceleration, to make the battery fit within the footprint of a Mini Cooper.
If the MT1 can deliver on its promised range, it could be very appealing. The growing popularity of imported Japanese Kei trucks in the U.S. also suggests there’s strong interest in this type of vehicle.
Although EVs are currently facing headwinds in the U.S., Marks is optimistic that Telo can succeed.
“There’s a saying here: ‘move fast and break things.’ That’s the Silicon Valley way,” he said. “But there’s also a mindset of achieving a lot with minimal resources and a small team. Can you do what big companies can’t?”
