Carvana has been granted the choice to put money into Slate Auto, the electrical automobile startup backed by Jeff Bezos, based on paperwork obtained by TechCrunch.
Paperwork filed with Delaware’s division of firms exhibits that the web used automotive retailer was given a warrant to purchase shares within the startup in 2025 — across the identical time Slate Auto was beginning to put collectively its $650 million Series C funding round.
It’s not clear if Carvana has exercised that warrant, or what number of shares it’s allowed to purchase. Carvana declined to remark, and Slate Auto didn’t reply to requests for touch upon the deal.
The transaction with Carvana comes because the retailer is taking a look at methods to develop into new automotive gross sales, based on the Wall Street Journal. The corporate has reportedly bought numerous Stellantis dealerships throughout america. Requested about new automotive gross sales on a current earnings name, CEO Ernie Garcia III informed analysts to “keep tuned.”
Slate Auto can also be simply weeks away from announcing remaining pricing and taking the primary nonrefundable preorders for its low-cost EV, which is predicted to begin within the mid-$20,000 vary. Slate has stated it’s going to ship its first autos by the tip of this 12 months.
Much like Tesla and different all-electric automotive corporations like Rivian, Slate says on its web site that it “gained’t have conventional dealerships.” The corporate has stated it’s going to promote autos on to clients, however it hasn’t provided a lot element about the way it plans to deal with the logistics of the car-buying expertise. Promoting by bodily Carvana dealerships may assist mitigate a few of these logistics complications whereas additionally elevating the startup’s profile.
Slate has been tight-lipped about its traders because it emerged from stealth final 12 months, shortly after TechCrunch first revealed that Bezos and Guggenheim Companions CEO Mark Walter had been backing the corporate. Slate revealed in April that Walter’s agency TWG World led the Sequence C spherical, making the businessman one of many startup’s largest shareholders.
Walter additionally holds a serious stake in Carvana. He owns 8% of the corporate’s Class B widespread inventory and 1% of the general voting energy. Solely Garcia III and his father, Ernie Garcia II, have extra management.
It’s attainable Carvana has already revealed some particulars in regards to the Slate tie-up to traders with out naming the startup.
In March, Carvana revealed in a regulatory filing that it had been granted a warrant to buy shares of a “non-public shopper merchandise firm” in June 2025. Carvana didn’t identify the corporate however stated the mixture worth of the warrant was $1.5 million on the finish of 2025 and that it “vests in tranches by 2029 primarily based on collectively decided efficiency objectives.” Carvana famous that Walter has a “substantial possession curiosity within the warrant issuer.”
Carvana didn’t say whether or not this was a reference to Slate or one other firm in Walter’s portfolio.
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