TELO Trucks, maker of the first electric mini truck designed for U.S. cities, has announced the close of its oversubscribed $20 million Series A funding round. The round was led by Yves Behar, legendary designer and co-founder of TELO Trucks, along with Marc Tarpenning, co-founder of Tesla and Venture Partner at Spero Ventures. Additional backers include TO VC, E12 Ventures, Neo, Marc Benioff, Uncorrelated Ventures, Nova Threshold, MCJ, and others.
The funding will support TELO’s goal of achieving production readiness and passing federal requirements to bring the TELO MT1 to market.
A Capital-Efficient Automaker
TELO has gained recognition for its capital efficiency, raising just $8 million in its pre-seed and seed rounds while successfully launching two pre-production prototypes. This is in stark contrast to other automakers who have required upwards of $50 million to reach the same milestone, making TELO one of the most capital-efficient automakers to date.
Joshua Phitoussi, Managing Partner at TO VC, emphasized TELO’s disciplined approach, stating:
“Disciplined scale-up is the name of the game in auto manufacturing. Many companies have made the fatal mistake of scaling up too fast, with too few proof points of product-market fit. TELO, on the other hand, has a liquid and well understood bill-of-materials, and CAPEX-light manufacturing model that leans on blue-chip partners, and 12,000 reservations that get the company well past profitability. This team has shown that they can execute with scarce resources. We’re excited to see what they can do now with strong funding and long-term partners.”
Strong Market Demand
TELO’s vision for a right-sized electric truck has struck a chord with consumers. The company has already received over 12,000 pre-orders, valued at more than $600 million. The TELO MT1 offers the same truck bed length as a Toyota Tacoma, with the ability to tow 6,600 pounds, all in a compact footprint of just 152 inches—the same length as a two-door MINI Cooper.
Industry Endorsements
Yves Behar, co-founder of TELO Trucks, shared his optimism:
“I have great confidence in the TELO team as we build a future-proof vision for mobility. The MT1 proves that innovation can deliver smarter design, greater practicality, and uncompromised capability, shaping how we’ll all move tomorrow.”
Marc Tarpenning, Venture Partner at Spero Ventures, added:
“TELO has the vision, product, capital efficiency, and manufacturing strategy to make the next great transportation company.”
Uncompromising Utility
The TELO MT1 redefines compact utility trucks with:
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Seating for five adults
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A five-foot bed extendable to eight feet with a folding mid-partition
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Flatbed space large enough for plywood sheets
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All-wheel drive and up to 350 miles of range
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Compact size for city-friendly navigation
At over five feet shorter than today’s mid-sized trucks, the TELO MT1 delivers the practicality of a full-sized crew cab work truck in a footprint made for urban living and fleet use.
With this fresh injection of capital and strong market interest, TELO Trucks is positioned to redefine the U.S. pickup market with a new standard in efficient, compact, and versatile electric trucks.