As automakers worldwide scramble to future-proof themselves in the electric era, China has been comfortably in the lead, cranking out next-gen EVs packed with cutting-edge tech and advanced battery systems one after the other at record pace. But behind the buzz and impressive new models, there’s a financial reality dragging at the wheels: most of China’s EV brands are still burning cash, not banking it.

Read: Seres 5 Crushes Tesla Model Y In Comfort But Loses The Battle Where It Counts

At last count, there were around 50 EV brands competing for space on Chinese roads. Out of those, just three of them are thought to be profitable. These include BYD, Li Auto, and Seres. Despite this, brands continue to offer generous discounts to grow their footprint, forgoing financial security in the pursuit of sales.

Discounts Keep Climbing

According to a JP Morgan study cited in a South China Morning Post report, industry-wide discounts averaged a record high 16.8% in April, up from an already steep 16.3% in March. The China Passenger Car Association puts the average discount for 2024 at 8.3%. To top it off, average EV prices were trimmed by 10% back in December. That’s not just aggressive, it’s unsustainable.

Last year, the difference between the selling price of an EV and an automaker’s costs, including raw materials, labor, and logistics, known as the vehicle margin, dropped to 10%. This is down from approximately 20% just four years ago. Analysts believe that most of China’s smaller EV manufacturers will be forced out of the market or will be acquired by larger rivals over the next couple of years.

“Nearly all of them were the victims of price competition,” said Phate Zhang from CnEVPost. “But if any of them chooses to exit the price war, their sales will decline and make it more difficult to post a net income.”

Looking Beyond China’s Borders

One potential lifeline is exports. Chinese carmakers have begun shipping more EVs abroad, where they can command better margins. According to JPMorgan’s Nick Lai, international sales are proving to be more profitable and could provide the breathing room these companies need.

“Price competition has turned fiercer this year. Unfortunately, we have not seen a jump in [EV] demand so far,” Lai noted. The domestic market, while massive, isn’t growing fast enough to offset the steep discounts.

Still, exports are trending upward. In the first four months of 2025, EVs made up roughly 33% of China’s total vehicle exports, up from about 25% over the past two years. It’s not a total solution, but it’s a glimmer of hope for brands looking to survive the increasingly brutal home turf battle.

As the EV world continues its game of musical chairs, one startup company thinks it has found a different way to stay standing when the music stops. Slate is betting on a different formula: simplicity over flash. In a market obsessed with massive screens and autonomous gimmicks, Slate thinks there is still room for vehicles that just work.

Read: Would You Really Pay $28K For A Crank Window EV With No Speakers?

CEO Chris Barman, a veteran of Chrysler, says that the startup, which is reportedly backed by Amazon boss Jeff Bezos, aims to deliver “fun, affordable EVs that people actually want to drive.” Her goal is to tap into an under-served market, and she just opened up about why she thinks Slate will succeed.

Barman, a mechanical engineer by background, joined Slate as CEO in May 2022. She spent most of her career in product development at Chrysler, eventually rising to vice president of electrical and electronics at Fiat Chrysler. Put simply, she knows how to build vehicles that can handle real-world abuse.

A Truck Without the Tech Overload

Slate’s first offering is a no-frills electric pickup truck priced from “around $28,000.” With current incentives, that could theoretically make a base Slate pickup roughly $20,500. No doubt, that would stand out in the U.S. market and the overall EV segment, though as always, there is no guarantee the $7,500 tax incentives will still be available when the trucks actually hit the road.

“There’s a massive population of people out there when it comes to safe, reliable, affordable transportation; there just really aren’t many alternatives for them,” Barman said in an interview with Business Insider. As of February, an EV costs an average of $6,300 more than a similar gas-powered car. Of course, some gas-powered cars do almost everything Slate offers and then some.

Nevertheless, it sounds like Barman is building this idea off of decades of love for similar vehicles. “I grew up on a farm. My first car was a 1984 Ford Ranger pickup, with a five-speed manual, manual windows, and no air conditioning,” she said. “It was basic transportation, but I loved the freedom it gave me to go places and do things.” That freedom-based thinking bleeds into the design of the Slate pickup.

Modularity Built In

Unlike just about everything else on the market, this thing stands out because of its modularity. Owners can add over 100 different accessories, and we’re not talking about Slate-branded valve caps. We’re talking about infotainment systems, speakers, cupholders, different exterior lighting surrounds, and even a conversion kit that turns the truck into a five-seat crossover.

“It may be, they were single when they first purchased the truck, and they recently got married, and a few years later, they have a family, and instead of having to exchange it out for a completely new vehicle, they can convert it into a five passenger SUV and continue to use the vehicle,” Barman told BI.

How exactly does she see users engaging at such a high level in a space that few people usually do? She says that the automaker will offer instructional videos online in what it’s calling Slate University. It is part of what Barman calls “a complete paradigm change in the car buying experience.” Buyers will not be locked into the expensive, bloated versions dealerships like to push. Instead, they will start basic and add only what they want, when they want.

Direct Sales

To help streamline the process, as with most EV startups, Slate is skipping traditional dealerships altogether and selling directly to consumers. Buyers will configure and purchase their vehicles online, with no showroom upsells or sales pressure to deal with.

Reservations for the EV are already open, with a refundable $50 deposit if you are feeling adventurous. Of course, the company still has a lot of hoops to jump through before any of this happens. Slate is working to secure an old shuttered factory to revive in the Midwestern US, and only once vehicles start rolling off an actual production line will we know if Barman’s dreams for Slate can turn into a reality.

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