Telo raises $20 million to build tiny electric trucks for cities

California-based startup Telo, founded in 2022, is developing a compact electric truck called the MT1 aimed specifically at urban environments. Unlike larger electric trucks struggling in the market, Telo’s MT1 focuses on city use, addressing challenges like parking and maneuverability in downtown areas. The truck, priced around $41,000, offers a unique combination of seating for five and a five-foot bed, maximizing “performance per square foot” compared to competitors like the Rivian R1T and Ford Maverick. Telo currently has about 12,000 pre-orders and plans to produce roughly 5,000 units annually through contract manufacturing, emphasizing rapid path to unit profitability rather than massive scale. Telo recently closed a $20 million Series A funding round co-led by co-founders Yves Béhar and Tesla co-founder Marc Tarpenning, with additional investment from Salesforce CEO Marc Benioff and several venture funds. The funds will be used to finalize the MT1’s production design,