Carvana ties up with Bezos-backed Slate Auto as it plans new car sales

Carvana is poised to deepen its involvement in the electric vehicle market by securing an investment option in Slate Auto, a startup supported by Jeff Bezos. Documents reviewed by TechCrunch indicate that Carvana has been granted a warrant to acquire shares in Slate Auto, which is gearing up for a significant $650 million Series C funding round in 2025. Although it remains uncertain whether Carvana has acted on this warrant or how many shares it can purchase, the online used car retailer is reportedly exploring avenues to broaden its offerings to include new car sales. Recent reports suggest that Carvana has acquired several Stellantis dealerships throughout the United States, marking a strategic move into this competitive space. During a recent earnings call, CEO Ernie Garcia III hinted at upcoming developments in new car sales, urging analysts to "stay tuned" for more information. Meanwhile, Slate Auto is on the brink of announcing its initial pricing and accepting non-refundable preorders for its affordable electric vehicle, projected to start at around $20,000. The startup plans to deliver its first cars by the year’s end. In a departure from conventional sales models, Slate Auto has announced that it will not operate traditional dealerships, opting instead to sell directly to consumers. However, the startup has yet to clarify how it intends to manage the logistics of this process. Collaborating with Carvana's physical dealerships could alleviate some of these logistical challenges while enhancing Slate's visibility in the market. Slate Auto has remained discreet about its backers since its unveiling last year, with TechCrunch previously reporting on the involvement of Bezos and Guggenheim Partners CEO Mark Walter. Earlier this year, Slate confirmed that Walter's firm, TWG Global, led its Series C funding round, establishing him as one of its principal shareholders. Walter also has significant stakes in Carvana, owning 8% of its Class B common stock and 1% of the overall voting power, placing him behind only Garcia III and his father, Ernie Garcia II, in terms of control. Carvana may have already disclosed certain details about this collaboration to investors without explicitly naming Slate Auto. In a regulatory filing from March, Carvana mentioned a warrant to purchase shares of a "private consumer products company" set to vest in 2025, with an aggregate value of $1.5 million at the end of that year, contingent on performance metrics. Notably, Carvana acknowledged Walter’s substantial ownership interest in the warrant issuer, although it did not confirm whether this was in reference to Slate Auto or another entity within Walter's portfolio.