There's this whole new focus on compact, do-it-all electric trucks. Ford has one coming, so does Slate, and Rivian's CEO recently shared that he believes that's an untapped market. That's probably good news for Telo.

The California-based startup stirred up quite the following when it popped up on the scene and revealed the MT1. After all, there's not anything for sale today that looks like a Toyota Tacoma and Mini Cooper decided to have a baby. And the latest update on the MT1 confirms that the truck is closer than ever to hitting the market.

In a production update shared to YouTube, Telo CEO Jason Marks said that the company has signed on with auto veteran Schwab Industries to build the MT1's body-in-white structure.

Essentially, the body-in-white is the skeleton of the MT1. Everything attaches to it: glass, seats, suspension, motor, batteries—you name it. These components all need the body-in-white before anything can that even remotely resembles a car rolls off the line.

While that might not sound particularly exciting, it's a very important step towards real-world mass production of Telo's tiny truck. Schwab has decades of experiencing building and assembling stamped parts for automakers as a Tier 1 supplier. Marks says that Telo delayed locking in any production tooling until it felt satisfied that its internal crash safety targets could be met. That meant validating impact and crash performance (as well as other structural requirements) prior to committing to any sort of production. 

The MT1 starts at $41,520 with 260 miles of range and can be configured as high as $55,999 (with dual motors, 350 miles of range, and solar-equipped accessories). Its main party trick is its size and packaging. The stubby pickup is about the size of a Mini Hardtop, but manages to squeeze in five seats and a 60-inch bed. It also features a collapsable partition between the bed and cab, so you can stuff in long items like surfboards and full-size sheets of plywood. 

It's an innovative proposition. The big question is whether a new EV startup can make it in 2026 after so many others have failed. 

Telo has been taking $152 refundable reservations for the MT1 in late 2024 and has managed to accumulate more than 12,000 as of last September. While this isn't a huge number, Marks says that Telo's profitability target is just 6,000 of those 12,000 units, meaning that the company isn't necessarily chasing volume as its primary driver. It's focused on the relatively niche market of city-dwellers who want a compact truck. 

The biggest challenge for the automaker might be its new competition. As mentioned, both Slate and Ford have competitors on the way both of which aim to start at or under $30,000. Telo aims to start production by the end of 2026.