On Tuesday, Telo, an electric vehicle startup still in stealth mode, marked a notable success. They recently raised $20 million in a Series A funding round. Industrial designer Yves Béhar and Tesla co-founder Marc Tarpenning are currently heading the funding effort. This investment will go a long way in supporting the company’s mission to build short, heavy-duty electric trucks designed for city use.
The announcement of the investment round attracted some pretty big hitters. Salesforce CEO Marc Benioff and early-stage venture funds such as TO VC, E12 Ventures and Neo jumped into the fray. Telo’s smart approach to new urban transportation aims to fill the needs of increasing frustrations on traffic and the need for more sustainability in city centers.
Founded in 2022, Telo has made a name for itself already in the electric vehicle space with its fast-growing reputation. While the company now has a staff of about 25, it uses a network of consultants and contractors to expand its operational capacity. Telo plans to produce 5,000 MT1 trucks per year through a contract manufacturing model. They’re working to meet a tsunami of demand, with their pre-order list already well beyond 12,000 units.
The funding received will be used to mainly advance the final production-intent version of Telo’s MT1 truck. These resources will play a critical part in assisting the homologation process to ensure compliance with U.S. safety standards. In turn, they will help complete safety-critical crash testing protocols.
CEO and co-founder of Telo, Jason Marks was all about the grit and smart moves assembling the MT1 work truck. He noted, “Our whole ethos is, what does it take to get to unit profitability as quickly as possible.” This announcement further highlights Telo’s focus on developing responsibly in support of sustainable automotive production amidst the macroeconomic landscape.
What makes the MT1 truck unique in the marketplace is its compact design purpose-built for urban environments. The base MSRP is just over $41,000. It seats five people comfortably and has a five-foot cargo bed. This setup provides a whole extra half-foot of carry space over many rival models.
Telo plans to start shipping its first MT1 trucks by late 2026. Marks highlighted the company’s unique positioning, stating, “That’s positioned us differently than the other automakers who have come out and said, ‘Hey, we need a billion dollars to get to production.’” Telo seeks to engage in more strategic and efficient allocation of resources. This is different from other automotive startups, many of whom depended on billions in funding before even starting production.
Telo’s focus on supporting equitable urban mobility speaks to an important trend we’re seeing across the industry. Cities are eager to find smarter, sustainable solutions to address traffic congestion and improve air quality. Marks remarked on the supportive community surrounding innovation in mobility: “It’s a pretty incredible community that just wants to see new architectures for mobility succeed.”
It works great in the hurry up and chop it all down culture that’s second nature among most Silicon Valley startups. Marks commented, “You’re told, ‘run fast, break things.’ It’s a very Silicon Valley nature,” further emphasizing the company’s adaptability and willingness to innovate in a competitive landscape.
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