TELO Trucks, the maker of a super small electric pickup truck, announced that they raised $20 million, and Tesla co-founder Marc Tarpenning was among the lead investors.
At Electrek, we have been closely covering TELO’s journey over the last few years. Our resident small EV-lover, Jamie, got a close look at the first pre-production prototype earlier this year.
TELO aims to bring to production a small electric truck, the MT1, that is no larger than a Mini, yet still packs a ton of utility, with a base price of $41,000 (before incentives, if any) and a range of 260 miles.
- Seating for 5 adults
- A 5-foot bed that extends to 8 feet with a folding mid-partition
- Once extended, the bed has space to fit plywood flat on the floor (not over wheel wells)
- All-wheel drive
- Up to 350 miles of range
- Exceptional navigability for high-density towns and cities
The company had raised only $8 million to date, which is really nothing in the capital-intensive world of electric vehicles, but the team still managed to produce two working pre-production prototypes.
Now, TELO announced that it raised $20 million in its Series A round of funding.
The round was led by Yves Behar, a renowned industrial designer and co-founder of TELO, and Marc Tarpenning, one of the two original co-founders of Tesla and a Venture Partner at Spero Ventures.
TO VC, E12 Ventures, Neo, Marc Benioff, Uncorrelated Ventures, Nova Threshold, MCJ, and others have also participated in the round.
Behar commented on the news:
“I have great confidence in the TELO team as we build a future-proof vision for mobility. The MT1 proves that innovation can deliver smarter design, greater practicality, and uncompromised capability, shaping how we’ll all move tomorrow.”
Tarpenning added:
“TELO has the vision, product, capital efficiency, and manufacturing strategy to make the next great transportation company.”
Capital efficiency is the name of the game. While $20 million is more than twice the money in the bank than TELO ever had, they plan to reach “production readiness and pass all federal requirements to get the TELO MT1 on the road” with that money, which would be extremely impressive.
TELO now has over 12,000 orders for its small electric pickup truck.
The company is also planning to incorporate Aptera’s solar technology on its vehicles.
Electrek’s Take
Tarpenning, now that’s a name I haven’t heard in a long time. I’m happy to see him still involved in the EV world. He and Eberhard, with their presentations on the founding of Tesla and its aftermath, played a significant role in convincing me that battery-powered electric vehicles are the future of transportation.
I do like the TELO project. This form factor really doesn’t exist in this part of the world, and I really don’t see any reason why.
Now, $30 million raised to reach production in the EV world is ridiculously low, but it’s not impossible.
Joshua Phitoussi, Managing Partner at TO VC, who participated in the round, said it best: “disciplined scale-up is the name of the game in auto manufacturing.” You can make it work if you remain liquid and track your costs like your life depends on it.
You have to design for manufacturability.
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