Marc Tarpenning and Martin Eberhard dreamed up Tesla, then convinced Elon Musk to fund it. Two decades later, they’re backing TELO, a maker of pint-sized electric trucks.
Alan Ohnsman, Forbes Staff
Forbes
2 min read
6/10
Key Takeaways
Marc Tarpenning and Martin Eberhard, co-founders of Tesla, have made their first known angel investment in a rival EV startup, TELO, which makes a compact electric pickup truck.
TELO's truck is roughly the size of a Mini Cooper (about 3.8 meters long) with a 1.2-meter pickup bed, targeting urban commuting and light-duty commercial use.
The startup has raised $22 million in seed and Series A funding, with the founders serving as strategic advisors, not board members.
TELO’s vehicle is expected to start under $30,000, with a 200-mile range, directly undercutting the Cybertruck’s entry price of around $61,000.
The move highlights a strategic divergence in EV truck design: the Cybertruck’s massive, angular body versus TELO’s small, utilitarian shape, mirroring a broader industry debate on vehicle oversizing.
In a striking reversal of loyalty, Tesla's original founders are betting on a tiny pickup truck that directly challenges the ethos of the Cybertruck. Marc Tarpenning and Martin Eberhard, the duo who conceived Tesla and brought Elon Musk on board, have invested in TELO, a startup building pint-sized electric trucks. The move underscores a growing pushback against the supersizing trend in EVs and signals a market shift toward compact, practical vehicles. TELO's truck, about the size of a Mini Cooper but with a pickup bed, targets urban drivers and fleet operators who find the Cybertruck's massive dimensions impractical. Tarpenning and Eberhard's involvement offers TELO instant credibility and capital, leveraging their deep EV industry experience. The founders' decision to back a rival concept—dubbed the 'anti-Cybertruck'—comes two decades after they founded Tesla, which now aggressively promotes its bulky, angular truck. TELO was launched in 2023 by former Tesla engineers and has raised over $20 million, with the founders joining as advisors. Their endorsement suggests a strategic rift within the EV community about the optimal form factor for mass adoption. The Cybertruck, despite its cult following, has struggled with production delays and polarizing design, while smaller trucks like the Ford Maverick have seen strong sales. TELO aims to fill a niche for a sub-$30,000 electric truck with a range of 200 miles—cheaper and more agile than the Cybertruck's $60,000+ price point. Analysts see this as a bet on 'right-sizing'—matching vehicle size to actual use cases, which could redefine the EV pickup market. 'The industry has gone too big, too fast,' said one automotive consultant. 'Compact trucks are an overlooked sweet spot.' For Tarpenning and Eberhard, supporting TELO is both a philosophical and financial move. They believe the future of personal transportation lies in smaller, more efficient vehicles—a vision they originally had before Musk pushed for luxury sedans. TELO plans to begin production in 2027, targeting both consumer and commercial buyers. If successful, it could force Tesla and other automakers to reconsider the value of compact EVs, potentially sparking a wave of tiny trucks across the industry. The next milestone: TELO's prototype unveiling at the LA Auto Show, where the founders' presence will amplify its message: small is the new big.
Frequently Asked Questions
TELO is an American startup founded by former Tesla engineers that builds a compact electric pickup truck. The vehicle is about the size of a Mini Cooper but includes a functional pickup bed, targeting urban drivers and fleets.
Marc Tarpenning and Martin Eberhard, the two original co-founders of Tesla who developed the company's early business plan and convinced Elon Musk to invest, have provided funding and advisory support to TELO.
TELO's truck is dramatically smaller, with a length under 4 meters, compared to the Cybertruck's 5.7 meters. TELO focuses on affordability and urban utility, while the Cybertruck is a large, angular, high-performance vehicle starting at over $60,000.
Tarpenning and Eberhard believe the EV industry has focused too much on large, expensive vehicles. They see a market gap for efficient, compact trucks for everyday use—a philosophy similar to their original vision for Tesla before Musk pivoted to luxury models.
TELO plans to begin manufacturing its compact electric truck in 2027. The company is currently in the prototype phase and expects to showcase a drivable version at the 2026 LA Auto Show.
The TELO truck is expected to have a starting price under $30,000, significantly less than the Cybertruck's $61,000 base price, making it one of the most affordable electric pickups on the market.
