Online used car retailer Carvana has secured the option to invest in electric vehicle startup Slate Auto, a venture backed by Amazon’s founder. The warrant allows Carvana to purchase shares in Slate around 2025, coinciding with the company's Series C funding round.
The move comes as Carvana plans new car sales expansion, having recently acquired several Stellantis dealerships across the US. CEO Ernie Garcia III hinted that more details on new car sales are coming soon.
Slate Auto is gearing up to launch its low-cost EV, expected to start at mid-$20,000 ranges, with deliveries by year-end. Unlike traditional dealerships, Slate plans direct-to-customer sales, potentially easing logistics through Carvana’s network.
Jeff Bezos’ investment firm Guggenheim Partners has a significant stake in both enterprises; Mark Walter, CEO of Guggenheim, owns 8% of Carvana and leads Slate Auto's Series C round. This strategic partnership could be more than just an investment.
