🎙️ “LIVE Interview with Slate’s CEO 🛻 Chris Barman’s EV Disruptor”

0:00Yetis, Nick and Jack coming at you from the T-Boy studio right now. We're about to play the interview part of our live show in Chicago, which is our interview with Chris Barman, CEO of Slate Auto. We think you're going to like it. We think you're going to love it. Jack, let's hit it. First, a quick word from our sponsor.

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3:45Yetis, our guest tonight is the CEO of the buzziest company in the buzziest industry. Slate Auto is building a pickup truck that's half the price of pickup trucks. Their biggest investor, Jeff Bezos. Yeah, that Jeff Bezos. And their product, it's making Elon jealous. because Slate's new car is electric, but that's the least interesting part of the car. She is building a car so low-priced, you could just Venmo them for it. It looks like a real-life Hot Wheel. It kind of looks like a toy. Honestly, it looks just like the emoji for a truck. And it's got so little technology in it, it seems like it was inspired by the Amish.

4:28Now, Jack and I have said there is opportunity in extremes. Well, Slate is the most extreme car we've ever seen. It's the disruptor of dealerships, the tamer of Teslas. The biggest innovator in the car industry since Henry invented Ford. Chris Barman, the CEO of Slate Auto, is our guest tonight, and we're thrilled she's here. We covered when she launched this company out of stealth mode back in April, and now we get to sit with her, and you do too. Yetis, give it up for Chris Barman.

5:07Chris, thank you so much for coming.

5:12Chris, you can go right here. My mic? Yep. Awesome. And we'll just, yeah, it's already on. All right, perfect.

5:19Chris Barman: Thanks for having me, guys. This is awesome. Chris, thanks for coming down. Thank you so much for coming. This is huge. Did you drive from Michigan or? I flew in. Okay. But actually, I'm driving back. So I'm going to make a stop at our production plant in Warsaw. At the Slate production plant in Indiana. But no, I'm going to stop at our manufacturing facility on the way back and then end up in Michigan. Great. Well, we wanted to ask you to kick things off. Every headline about Slate in the last few months, Chris, has been about the Bezos investment from Jeff. Some have called it the Bezos mobile.

5:52How did you and your team convince Jeff Bezos to invest?

5:56Chris Barman: so let me give you a little bit of history of like the idea of slate like the whole how did it come to be um so the ceo of rebuild manufacturing a gentleman by the name of miles are known had this idea in the fall of 2021 like where have all the affordable vehicles gone like every new car was coming out and he just looked at and he's like you know he loved when he was younger his jeep Cherokee, like the old XJ, the boxy one, which was just a basic vehicle. And he started thinking about it. He's like, there's no VW bugs. Like, there's no Model T. Like, what happened to all of those vehicles? And started, you know, talking with the chairman, Jeff Wilkie, and Will Parker, who, you know, is on the board and like, hey, this isn't here.

6:42Chris Barman: What about, like, why don't we do something like that? Something like the VW Beetle. Yeah, like a really basic vehicle. Super basic car. Back to the basics, like only the essentials. And so they hired, at the time, the executive chairman, Rod Copes. Rod's background was from Harley-Davidson and Rivian. So a little bit of that accessorization of a vehicle and bringing in some automotive. And then they went and did a search for a CEO. And I was contacted by an executive recruiter. And I read this document. And the first time I read it, I was like, this is insane. You know, who thinks that you can really do this?

7:23Chris Barman: And I had been in the auto industry for a number of years. And I woke up the next morning clear head. And I was like, okay, set aside everything that you felt encumbered large automotive manufacturers. And look at it through this lens of really can these things be done. And started working through it. And I was like, yeah, there is something here that this can really be done and be possible. So very fortunate they asked me to come on board. And we built a small team in 2022, improved out a business model. And then at that point, we had to go get some people to support us. Now, let's get to how you actually came to the market, because it was insane.

8:01Before we describe the car, which you can see a picture of up here. But there were zero leaks about this. Last spring, suddenly, these bizarre cars started driving around San Francisco with things on them like cat therapy business or put your baby in our car and we'll drive them to sleep. What was going on with this mystery launch you guys did?

8:25Chris Barman: So we had a great team of people that were working really hard on this because we had been in stealth for almost three years, like just working away on a car and we were ready to come out and tell everybody like, hey, like we're out here and we're doing this car. But how do you go from like zero to like massive awareness in the minimal amount of time. And the team worked really hard on whatever theme they came up with, it had to showcase the vehicle itself and what it did. And so where you saw those different parody businesses, like every day there was a different version of the vehicle, be it the truck, be it the squareback SUV, be it the fastback SUV, that was wrapped differently and accessorized differently.

9:09Chris Barman: But with these, yeah, fake businesses to get people like a little bit of mystery, a little bit of intrigue, a little bit of confusion, like what's going on? So every day on Abbott Kinney in L.A., we parked a different vehicle out there. So as you mentioned, one of them was Cry Share. So if you have your crying baby and you really want somebody to just drive it around for a while, they'll do that. but if you haven't seen the vehicle it had like car seats on the top of it and so it was to you know put a little bit of stretch in there people looking at it like going okay this can't be real but actually like we were kind of quietly had people monitoring and as you know people walk down the street and they're like well I don't know maybe like babies like the feel of the wind in her face and it could be really soothing.

9:55Chris Barman: So, um, you know, it, it went, you know, from there to, um, cat therapy was one of them. And the one that we ended with was, um, taxiderm my family. So, um, you know, if you just don't want that family member to go away, you can taxidermy and have them stay with you. But in all of this, each one was wrapped differently and shown different configuration so that as we came out and announced the car, it was the basis upon which showing the scale at which and the variety at which the vehicle can be changed. So I got to say, Jack and I were talking before the show, we love your legal team that they were okay with this.

10:34In fact, we were thinking you're going to be the first car company that has a LeBouBou doll and an Erewhon smoothie collab. So we covered the launch in April. and on our show we described it as the first car inspired by the Amish because it's an analog car. There's a lot of technology we expect from cars these days that the Slate truck does not have. It doesn't have a radio. It doesn't have speakers. It doesn't have power windows. None of these are in the car. Why do you think that someone would like a car that's so anti-tech?

11:10Chris Barman: The way that we thought about it is, one, we wanted to make sure we looked at price point. So we looked at anything that goes in the car has to fight its way back in, that people really want. And some of it is also a little bit of people are getting a little bit of tech fatigue as well. But what's unique about what we're doing is we want the power of choice to be in the owner's hands. So it doesn't mean you can't have the tech, but you decide what you want to bring into the vehicle after purchase. So as you said, no radio. We've designed that. If you want to bring a radio in, the design of the center storage bin area fits for a single din, so you can bring a radio in.

11:51Chris Barman: But we've also developed an app. Like most people today, you just use your streaming audio and your navigation and everything from your phone. Why try to replicate that? Like there's a great source out there. If you want something bigger than your phone, we've got an accessories rail on the lower part of the instrument panel, and that's where you can bring in a tablet. Yeah, so you make it super easy to just put your phone in there. Exactly. Your phone, your tablet. And then what it does is it disconnects from the consumer electronics life cycle. So like, you know, radios today and infotainment systems are embedded in there.

12:21Chris Barman: And in a few years, it's like totally outdated. This is like just unclip the one you have and bring it away. My father-in-law has this like really expensive home surround sound set. Oh, like a lot of knobs. Yeah, but it's like it's so out of date. I just like Aircast my Spotify and he hates it when I do that. Well, the funny thing, Jack, and I noticed was when you announced the car, you said that it was not going to have a screen to change the temperature. You said it would have knobs, and everyone applauded. Everyone applauded, and I get that. I wish so badly I could change the temperature more easily.

12:50Instead, I have to tap the screen four times. You're kind of taking the Mr. Potato Head approach to the car, or Ikea. I guess Ikea is the analogy here. You kind of are letting the consumer do it themselves. But that's why we said in our introduction of you that the fact that this truck is electric is the least interesting thing about it. Because Nick and I on our show, you've heard us. We've described modern cars, especially electric cars, as iPhones on wheels. But you guys are like, you already have an iPhone. Why would I sell you another? Yeah.

13:21Chris Barman: Really, again, we just want the basic transportation to be there. And we want it to be safe, reliable, affordable. So we're going to design it to the highest safety standards, a new car assessment program, five star IHS top safety pick, one of the best warranties in the industry. And and really the market that we're looking to go into where like most electric vehicles have gone and where the whole industry has gone is really like up market and high end. We're looking to come in at that affordability price point. And so we think, you know, yes, we'll get new vehicle buyers, but we're looking at people who thought they could only afford a used vehicle.

13:56Chris Barman: and now being in that price point where instead of, hey, my only option was that I had to get a car that was high mileage, had older safety standards, it's out of warranty, it might break down. You're getting the latest safety standards. You're getting one that's under warranty. Being an EV, it's going to be a lower total cost of ownership for the vehicle, and you can accessorize it however you want. So you can turn it into your own personal vehicle. So you basically, I want to talk about customization in a second, but you basically went full Model T in the sense of your assembly line has the same exact car rolling off of it.

14:32That's classic Henry Ford. It's a two-door pickup truck, electric in slate gray, or as you call it, a blank slate.

14:42Chris Barman: We do. We call it the blank slate. You can have any car you want as long as it's a blank slate. We make it, you build it. Great. So what if people don't want a blank slate? Tell Tell me more about this customization. So we're designing hundreds of accessories that can go on the vehicle so people can trick it out and make it their own. So one of the big ones, as you mentioned, it's only in slate gray. We recognize not everybody wants a gray vehicle. But we've designed it up front to be wrapped. So that's how you get your color. Like a Christmas present? Not quite like a Christmas present. But using the vinyl wrap that's used in the industry.

15:20Chris Barman: I mean, cars today, if you get a car wrapped today, typically it's thousands of dollars in takes, you know, days in order to do it. Because it's not been designed up front, so you have to remove, you know, door handles and other parts of the car. And then there's these complex curvatures to it that, you know, give it a design that is what was the theme of that brand. But it's really difficult to wrap it. we started working with one of the largest RAP providers in the early days, like in August of 2022, he came in and is still working very closely with us and advised us on, these are the type of handles you want to use, and this is how you want to design your lights, and this is what you want to do for the curvature of the vehicle.

16:02Chris Barman: So, a lot of great input to our design team. Our design team really took it to heart. And then, given the fact that we use composite exterior panels that are not sheet metal, we're able to actually like mold in features that allow you to take smaller pieces of the wrap kit and install them so we're doing it with the mind we want it to be diy so if somebody wants to they can actually wrap their own vehicle we'll have slate university where you can use uh learn if you're maybe not that bold and don't want to do it or you just don't have time we'll have a network of service providers that can do that now a quick word from our sponsor This episode is brought to you by Bill, the intelligent finance platform that helps businesses scale with proven results.

16:47Yet he's paying and getting paid. That is a pain for small and medium-sized businesses. Jack, did you send the invoice? Did they see the invoice? Did you remember to remind them to see to pay to remember to pay the invoice? If you drop the ball in any one of those steps, you don't get paid. Nope. And you're missing out on cashflow. You should not have to chase your customers. This isn't TAG. So powered by AI, Build does all that simply and automated so that you don't have to. ACH, credit card, check, international wire transfers. They probably do carrier pigeon Bill Pay if that's how you want to get paid.

17:17Bill is the intelligent finance platform trusted by nearly half a million businesses and 98 of the top 100 US accounting firms to manage, move, and maximize your money. They have securely processed over a trillion dollars in real transactions. That is proven infrastructure you can actually trust. So besties, talk to an expert at bill.com slash proven and get$150 gift card as a thank you. That's bill.com slash proven. Terms and conditions apply. See offer page for details. Built. Housing. Yeti's housing is now 40 % of your budget and 40 % of your brunch convo. You can't bust into pancakes with a buddy for brunch without venting that your landlord is brazenly raising your rent again.

17:5512 %? Or your mortgage broker. No offense, Pam, but that interest rate felt personal. Yeah, it did. But are you at least getting rewarded for paying your huge rent or your mighty big mortgage? The answer is probably no, but the solution is probably Built. Because becoming a Built member means earning points on every housing payment, no matter where you live. And those Built points can be redeemed for flights, hotels, lift rides, Amazon.com purchases, future housing payments, and more. You can even redeem your Built points at SoulCycle, Barry's, Rumble, or Pure Bar. What we're saying is paying your rent or mortgage with Built could get you free Pilates and boxing class.

18:29And again, Built works for mortgages too if you happen to be a homeowner. And with that boxing class, you can fight your landlord. Because housing is 40 % of your salary and 80 % of your brunch convo. I'm not advocating violence yet. I'm advocating that you download the Built app and join the membership for where you live at joinbuilt.com slash T-B-O-I. That's J-O-I-N-B-I-L-T dot com slash T-Boy. Use our links so they know we sent you. What's the craziest thing that you wanted to launch, but you didn't launch. And you can, no one here will tell anyone, I promise. You can just share with us. But was there anything you guys really were like spitballing, were like, hey, let's do that, but that didn't?

19:08Chris Barman: We did. And this is, okay, so this is going to be like a little bit nerdy, like on the engineering side, but we upfront spent a lot of time trying to understand how to do a bolted body instead of a welded body. Because when you put a weld shop in, it requires so much capital investment. We wanted to see could we do it in a lower cost way and have it all come together and meet all the right quality and safety and everything and we studied that for a few months and we're like okay, that's a bridge too far. I thought you were going to say we almost didn't have doors. No, but you can drive it. Not a bad idea.

19:43Chris Barman: But you can drive it without doors if you want. After the fact, yeah, you can take the doors off. I know there's an SUV kit. There is an SUV kit. Do I install that myself? Does it arrive in the mail? You can do that if you'd like to. So thinking about Ikea, we used inspiration from a lot of different areas. It comes as a flat pack. So you can actually install it. Like what we have up here? That's the truck. Like a pickup truck, right? Yep. So you get the pickup truck. If you want to be an SUV, you order the SUV kit, two kits. It's either square back or fast back. We'll mail you the kit if you want to install it yourself.

20:18And yeah, you put it together.

20:21Chris Barman: So first you put in the roll bar. The roll bar has airbags on it because we want to make sure that everybody's safe. Next, you put in the seat. You cannot put in the seat unless you put in the roll bar. We don't ever want to see anybody driving around with a seat without having the roll bar. And then you can put on the cap. Okay, but how, Jack and I were trying to run the numbers on this. $25 ,000. I mean, this is the most important part. This is the key part here. $25 ,000. Yes. I mean, Tesla's, you know, hasn't been making a profit. You have Rivians never really made money on their cars, what is it that's going to make you guys, as you said, profitable and able to sell at this price point of$25 ,000?

20:57How can you be profitable on a car that's selling for half the price

21:02Chris Barman: of the other cars? So the, I mean, the business model that we took on this was where we talked about only the essentials, taking things out that we want to put the choice in the consumer's hands to do that. So, I mean, to develop the infotainment system is extremely expensive and those electronics are expensive. You know, we have manual window regulators. So you might think about, yeah, crank them. I don't think Gen Z knows about the crank motion for a window. It's a forearm workout. But as an accessory, you can choose to have power windows. But every one of those choices, like, helps us to get cost out of the vehicle.

21:39Chris Barman: Another example I can give you is if you look at the inside door rests, it's the same part on the left side as the right side. In doing that, it allows us to only invest in one tool. We buy more of those parts. The more volume you buy, the lower the cost is on that part, and that reduces the overall cost of the vehicle. So, you have to be very mindful about it up front. I mean, we got to ask about the crashes. We were curious about the crashes. So, you've made 75 of these cars so far, right? We have. Prototypes, but we've made 75 prototypes. We've built those ourselves. And half of them you crashed on purpose?

22:17Chris Barman: We have. We've crashed half of them on purpose. It's really important for us to do that. So, you know, we were in a phase in, you know, early 2024 where we were doing a lot of virtual modeling. So doing a lot of, you know, work in math dating CAD and simulation and designing the car. But at some point you have to make sure like what you're designing there is reality. So we built 75 prototypes and about half of them we've crashed into the wall doing all the different tests that we do. And we're really pleased that they performed well. They've correlated back to our models really well. So now we've got insights that as we move forward in order to do the final production release, we've got confidence that it's going to perform as we expect.

23:02And Chris, you also happen to be the first car brand we'd ever heard of that had been invited to a wedding. Yeah. Which sounds like product market fit if we've ever heard of it. That is beautiful. So someone sent the company a wedding invitation?

23:16Chris Barman: We received a wedding invitation from a couple out in the Long Island area. And it came to Slate. Not to anybody at Slate. It came to Slate. Slate's been invited to the wedding. And unfortunately, Slate is not going to be able to attend. You are, CP? No. But we're going to send some nice gifts. Good. Good, good, good. Well, we are legally obligated to ask the next question. So this is a business podcast. AI is all that anyone talks about. Does Slate have an AI or autonomy game plan? So we're really focused on this vehicle that's skew of one. We're not exploring AI right now. We're not exploring autonomy.

23:56Chris Barman: There's a lot of smart people that are working on solving that problem. We're really working on solving the problem of the affordable vehicle. I feel like this is the coolest. You're the only CEO we've ever heard of who is not pursuing AI right now. And I think you deserve credit for that. That deserves a round of applause.

24:14But Chris, are you buying Bitcoin instead? No. If you did pursue autonomy, I mean, you would have had to raise 10 billion extra dollars. You know, like that is just such an expensive thing to pursue. Yeah.

24:29Chris Barman: I mean, again, there's been a lot of smart people who have been working on it for, I mean, decades. Just trying to solve that problem. and they've made great strides over the years. But our focus, again, is the definition of what's affordable in automotive industry right now is broken. And that's where we want to come in and solve that problem. So Chris, where do you see the car industry in 10 years? Like Jack and I are picturing, we like to think of industries in 2035. And we're thinking about our little sons, boys, babies. Are they going to have driver's licenses in 2035? Yeah, so it's a really interesting question.

25:07Chris Barman: And before I answer it, I want to ask you a question. Yes. I'd love to. Okay, so for both of you, what was the first car that you drove or drove when you got your license? Because we ask this question sometimes, and some people maybe drove before they should have been driving. 1991 Honda Accord. Jack taught me how to drive stick. I was going to say stick shift. Yeah. 1991 Accord. Okay. And was there anything in particular that you liked about it or you remember about it? It smelled like my grandfather because it was his car. And when he passed away, my oldest brother Nick got it. And then my brother Tuck got it.

25:41And then I got it.

25:42Chris Barman: Okay. And then Teddy totaled it. Okay. I'm sorry about that. Suni. Mine was a Toyota Land Cruiser that was white. It was my parents. It was affectionately called the ice cream truck because it had too many seats and was too bright. and so we actually would play ice cream music sounds when you're driving down the streets in New York and it was getting some attention. Mine also had one of those automatic seatbelt things. Oh, yeah. You close the door and it's like, must be nice. I remember that. I remember that. But I think what's special about asking that question is as people talk about it and as I ask the question to both of you, you got animated and you talked about what you called it and everything.

26:26Chris Barman: but I think the theme and the thread that runs through that is like there's a feeling of independence and a feeling of freedom once you get that first vehicle and you can start to drive and I think even when you think about like 2035 people are still going to want freedom and independence and how they get around and what they do and so you know who knows what the form factor may exactly look like who knows where autonomy may be but I think the ability to have independence and freedom to get somewhere will always be there so there will be some way, shape, or form of a car that's going to be piloted by people.

27:01So Chris, there's been a recent development that can't be good news for Slate. Since 2009, electric car buyers have enjoyed a$7 ,500 off coupon from the federal government as a financial incentive to buy electric cars. That ends in September because of the big, beautiful bill. So Slate will be the first electric car company not to benefit from government support. If you could say one thing to the president about all this, what would it be? Yeah.

27:35Chris Barman: We would say the same thing that we say to everybody. I mean, America just needs more affordable vehicles that are made in the U.S. Indiana. In Indiana.

27:56And Chris, last question before we let you go. You're running a startup in the most challenging industry in the United States, pulling off a challenge of taking on Tesla and General Motors at the same time. It is so competitive. So competitive. And you've got this wildly cool-looking truck right here. With a business model, Jack and I said it was like Spirit Airlines meets JetBlue. It is out there. Any advice you have for our ambitious millennials in the audience who are all building something right now? Could be a company, could be a career, could be a relationship.

28:28Chris Barman: Yeah, I think it's don't ever be afraid to take a risk. You never know what might end up coming from that. And even if you stumble or you fail along the way, you're going to learn. And it's the learnings that are going to then propel you to just get better the next time you go at that next big dream or next big thing you're going to tackle. So there's a lot of fun in doing that.

29:01Chris, we were so excited to cover this in April. We think it's awesome. We're so glad you came here tonight. Full disclosure, I'm one of your reservations, and I convinced my father-in-law to do the same. But we've got to ask you before we leave, what's the takeaway from the CEO of Slate, Chris, on Slate?

29:18Chris Barman: Yeah, so we build it, you make it. go to slate.auto, check out our slate maker. And we hope that you reserve one. And actually, I was going to ask, so since you've reserved one, have you made one on the slate maker? I have. Yeah, I went pretty basic. I want a pickup truck. I always need to haul stuff, and I don't have a flatbed. We're going to put a podcast studio on that flatbed. I haven't customized the colors, though. I'm not sure I have. Technically, that's a write-off. You haven't? No, go customize the colors. You can put a lift kit on it if you want. You can do different things. You can save it.

29:52Chris Barman: You can share it with others. It'll be my first stop after the show. All right. Awesome. Thank you. Give it up for Chris. Thank you.

30:02Chris, that was wonderful. Thank you very, very much. Thank you.

30:16Yeah, it is Nick and Jack back with you from the T-Boy studio. That was a hell of an interview and a hell of a live show. That was insane. To anybody who came, thank you so much. To those of you who just listened today, thank you so much. And we may be coming to a city near you pretty soon. We've got some touring ideas. We're thinking of making this a monthly occasion. Don't hold us to that, but that's the ambitious goal. In the meantime, besties celebrate the win this weekend. Jack, let's grab some lozenges for this weekend, and we'll see you Monday with our usual D-Boy.

30:53This episode is brought to you by Bill, the intelligent finance platform that helps businesses scale with proven results. Yet he's paying and getting paid. That is a pain for small and medium-sized businesses. Jack, did you send the invoice? Did they see the invoice? Did you remember to remind them to see to pay or remember to pay the invoice? If you drop the ball in any one of those steps, you don't get paid. And you're missing out on cashflow. You should not have to chase your customers. This isn't TAG. So powered by AI, Build does all that simply and automated so that you don't have to. ACH, credit card, check, international wire transfers.

31:26They probably do carrier pigeon Bill Pay if that's how you want to get paid. Bill is the intelligent finance platform trusted by nearly half a million businesses and 98 of the top 100 US accounting firms to manage, move, and maximize your money. They have securely processed over a trillion dollars in real transactions. That is proven infrastructure you can actually trust. So besties, talk to an expert at bill.com slash proven and get$150 gift card as a thank you. That's bill.com slash proven. Terms and conditions apply. See offer page for details.