San Carlos-based Telo has secured $20M in Series A funding to bring its bite-sized electric truck, the MT1, to market.
The round was co-led by designer Yves Béhar and Tesla co-founder Marc Tarpenning, with participation from Salesforce CEO Marc Benioff, TO VC, E12 Ventures, and Neo.
A new approach to EV trucks
Founded in 2022, Telo is betting that Americans’ love for trucks can translate into enthusiasm for smaller, city-friendly EVs. The MT1 is designed to fit urban streets, offering seating for five, a five-foot bed, and a range of around 350 miles — all packed into the footprint of a Mini Cooper.
Unlike legacy automakers chasing mass production, Telo is focusing on efficiency and capital discipline. With a preorder list of roughly 12,000 vehicles, the company plans to start with around 5,000 trucks per year through contract manufacturing.
“Our ethos is about reaching unit profitability as quickly as possible,” said CEO and co-founder Jason Marks. “Rather than needing billions, we’re proving we can get to production lean, fast, and with a small team.”
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Funding goals and next steps
The fresh capital will fund crash testing, U.S. safety certifications, and the final production-intent version of the MT1. Telo aims to deliver its first trucks by late 2026.
The company currently employs about 25 people but relies heavily on consultants and EV veterans, many connected through Tarpenning’s network.
Designed for urban utility
Despite its compact size, the MT1 prioritizes utility. Marks highlights the concept of “performance per square foot” — packing in more cargo and passenger capacity than competitors like Rivian’s R1T or Ford’s Maverick.
While not built for blistering speed, the truck emphasizes practicality, safety, and range. Its novel battery-pack design allows long-distance driving without excessive weight or cost.
Building resilience in EV adoption
Telo’s approach comes as many big-name EV truck efforts stumble. The Cybertruck has struggled, Ford’s F-150 Lightning sales have slowed, and other startups have collapsed under capital demands.
By contrast, Telo is carving out a niche in urban mobility — a market where maneuverability, parking ease, and efficiency are paramount.
“You’re told to run fast and break things in Silicon Valley,” Marks added. “But we’re proving that you can also do a ton with the smallest amount of capital and the leanest team possible.”
