Telo Raises $20 Million To Build Tiny Electric Trucks For Cities
Big electric trucks are struggling to win over buyers. Tesla’s Cybertruck has stumbled, Stellantis scrapped the Ram 1500 EV, and even Ford’s F-150 Lightning sales have slowed. But America still loves trucks—so maybe the answer lies in going smaller.
Image Credits:Telo
That’s exactly what California-based startup Telo is betting on. The company has designed a compact electric pickup called the MT1, priced around $41,000. And now, investors are backing that vision. Telo raises $20 million to build tiny electric trucks for cities, marking a big step toward making urban-friendly EV trucks a reality.
Who’s Backing Telo’s Big Idea?
The $20 million Series A round was co-led by industrial designer Yves Béhar and Tesla co-founder Marc Tarpenning, both also co-founders of Telo. Other big names joined in, including Salesforce CEO Marc Benioff and early-stage funds like TO VC, E12 Ventures, and Neo.
Compared to rivals, Telo’s funding looks small. Companies like Slate Auto have raised more than $700 million, while Fisker, Canoo, and Lordstown Motors once raised hundreds of millions before collapsing. But Telo’s approach is intentionally lean and focused.
A Sharper Focus: Cities First
Unlike startups chasing broad markets, Telo is laser-focused on urban needs. “Our hyper-focus is on trucks for the downtowns of cities,” CEO Jason Marks told TechCrunch during a tour of Telo’s 10,000-square-foot San Carlos facility—right next to Tesla’s original headquarters.
The MT1 is designed for navigating tight streets and crowded urban spaces, where big EV trucks often fall short. While small farmers and other niche buyers are interested, cities remain Telo’s first target. Marks noted that his own frustration with San Francisco’s parking challenges inspired much of the company’s vision.
Why Telo’s Approach Could Work
For city drivers, a smaller electric truck makes practical sense. Parking is easier, operating costs are lower, and emissions-free driving aligns with urban sustainability goals. Investors are betting that Telo can capture a market overlooked by traditional automakers.
The MT1 isn’t just tiny—it’s versatile, stylish, and designed with input from founders who understand both design and EV engineering. That combination could give Telo an edge in carving out a loyal customer base.
Raising $20 million may not match the firepower of larger EV startups, but Telo’s focused strategy could help it avoid the pitfalls of overexpansion. By targeting cities first, the company has a clear path to stand out in a crowded electric vehicle market.
With demand for urban-friendly EVs growing, Telo’s tiny electric trucks could play a big role in shaping the future of sustainable city transport.
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