Telo, a burgeoning electric vehicle startup, announced on Tuesday that it has successfully raised $20 million in a Series A funding round. Yves Béhar and Marc Tarpenning, two other co-founders of Telo, co-led the round. They are heavy-hitters in their own right in the automotive industry. Other investors are Salesforce CEO Marc Benioff and several early-stage funds, including TO VC, E12 Ventures and Neo.
Founded in 2022, Telo has rapidly landed on the radar of transportation innovators for their bold vision to disrupt traditional assumptions about urban transportation. The company is working to produce smaller electric trucks built for urban settings. Their pre-order list is already filling up quickly — it’s at 12,000 units and counting. The startup intends to eventually manufacture an ordered 5,000 MT1 trucks per year via contract manufacturing.
In a statement attributing the funding, Jason Marks, Telo’s CEO, described his company’s goal of reaching profitability as quickly as possible.
“Our whole ethos is, what does it take to get to unit profitability as quickly as possible,” – Jason Marks
We’ll use the proceeds from this most recent investment round to complete production-intent final version of the MT1. Our hope is that we can do just that. Telo aims to complete the homologation process to meet U.S. safety standards and finalize crash testing, both critical steps towards mass production.
Telo’s MT1 truck can seat five passengers in comfort. It rounds out those interior accommodations with a five-foot bed, too—giving it more rear storage room than most competitor trucks available today. For reference, the MT1 base MSRP starts around $41,000. And because it’s specifically designed for navigating tight, crowded downtown areas, it’s perfect in spaces where larger trucks typically cannot go.
Though Telo’s initial focus is urban areas, the company is eyeing secondary markets as well—small farmers, for example. Yet, despite the climate-friendly bells and whistles, the primary focus is still on catering to the preferences of urban residents.
“We’re the only vehicle that can seat five with a five-foot bed,” – Jason Marks
Telo’s ambitious timeline expects to start delivering its first MT1 trucks before the end of 2026. Telo is more interested in distinguishing itself from traditional automakers. Unlike most that only seek significant investment before entering into production, Telo takes a different approach.
Telo’s strategic approach involves leveraging a community that eagerly supports innovative mobility solutions. Marks acknowledged the intoxicating atmosphere around all the new transportation technologies.
“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,’” – Jason Marks
Over the last few months, the electric truck industry has grown extremely competitive. As more and more people want better, more convenient sustainable options, companies are racing to supply that demand. Given its focused strategy and clear commitment to advancing sustainable urban mobility, Telo might be well-poised to place itself within this growing market.
“It’s a pretty incredible community that just wants to see new architectures for mobility succeed,” – Jason Marks
Now that Telo has rounded out its funding, it seems to have a clearer path toward production. It has the potential to transform how cities of all sizes address their transportation needs. Their unwavering commitment to producing these compact, high aerodynamic vehicles has positioned them well with the growing trend toward sustainable and practical lifestyles in our urban cities.
With the completion of its funding round and a clear vision for production, Telo stands at the forefront of a potential revolution in how urban centers address transportation challenges. The company’s dedication to building smaller, efficient vehicles aligns with broader trends toward sustainability and practicality in city living.
