This week, Detroit-based brand Slate confirmed its new electric pickup will start at just $24,950, which will make it the cheapest truck in the United States. But another U.S. startup is set to launch an even more affordable small pickup. Based in Texas, REO Industries has announced target pricing and the opening of reservations for its downsized truck, known as the Runabout. Starting at over $3,000 less than the Slate, REO’s challenger will have no range anxiety issues since it has a traditional gas engine. Could this be the model to truly revitalize the small pickup in America?
Related: 10 Cheapest Trucks You Can Buy in 2026
An Historic American Truck Brand Returns
REO
The REO name isn’t new, with the REO Motor Car Company having been founded way back in 1905 by Ransom Eli Olds, after he left Oldsmobile. The company is best known for producing rugged trucks and utility vehicles. Much more recently, REO Industries founder and CEO Zach De Bernardi secured a trademark for the brand. While REO today has little to do with what it was in the early 20th century, the company’s ties to practical workhorses perfectly complements its new range of basic, cheap vehicles.
With that bit of history out of the way, we can focus on the three upcoming models. These are the Runabout T4X (two-door pickup), Runabout T4C (four-door pickup), and the Runabout S4C (an SUV).
You will never see screenslop like this in our cars. pic.twitter.com/N2hfcIEyTJ
— REO Industries (@reoindustries) June 17, 2026
The T4X will be around 180 inches long, according to Road & Track, which is around the length of a Civic. Priced from $21,500, this will be a body-on-frame pickup with a four-cylinder gas engine and mechanical four-wheel drive. Six-speed manual and automatic transmissions will be available and REO is targeting a range of over 600 miles on a full tank—roughly three times the range of Slate’s electric pickup. A towing capacity of around 4,500 lbs makes it far more capable than small sedans or crossovers in the same price range. REO also claims the powertrain has a lifespan of 500,000 miles.
The teaser shots shown here are merely directional imagery examples and not final designs. However, we expect REO’s models to have simple, squared-off designs built around utility rather than the latest trends.
How REO Will Keep The Pricing Down
REO
There will undoubtedly be some sacrifices in building a pickup that starts at just over $20k. Drawing inspiration from uncomplicated Japanese Kei cars, the cheapest truck may be sold without a radio or finished door cards. Physical controls will be more prevalent than screens, although a number of standalone options will allow customers to add in a few essentials.
“What we’re setting out to do is ask the question, ‘What’s the definition of a truck?’ We’re going to build that,” said De Bernardi. “We’re just going to make it smaller, and we’re going to try to make it more affordable, and we’re going to do what makes sense economically in terms of a startup.”
You can now reserve a REO Runabout model for $25 on the manufacturer’s website. The company is aiming for a model reveal in the fourth quarter of 2026, followed by pilot builds in 2027 and deliveries from late 2028.
What It Means
REO
The early specifications and pricing are promising, but getting a startup off the ground is exceedingly challenging. Once the first model arrives, scaling up often introduces a range of new challenges. But REO Industries is a rare U.S. startup that hasn’t gone the EV route. These are straightforward gas-powered models that prioritize durability without the range sacrifices that come with small, cheap EVs. That could be the crucial difference that sets REO apart and decides its success.
