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Carvana ties up with Bezos-backed Slate Auto as it plans new car sales
Carvana has secured an option to invest in Slate Auto, an electric vehicle startup backed by Jeff Bezos. This strategic move comes as Carvana looks to expand into new car sales. Slate Auto is preparing for a $650 million funding round and plans to deliver affordable EVs by year-end, aiming to sell directly to customers without traditional dealerships, similar to Tesla.
Key points
- Carvana received a warrant for shares in Slate Auto for potential investment by 2025.
- This timing coincides with Slate's $650 million Series C funding round.
- Carvana is diversifying into new car sales and has acquired several Stellantis dealerships.
- Slate Auto plans to launch its low-cost EV starting under $30K and will accept preorders soon.
- The partnership could enhance Slate's visibility and streamline logistics by using Carvana’s dealership infrastructure.
Why it matters
- The collaboration reflects a growing trend in the automotive industry towards electric vehicles and direct sales models.
- In recent years, traditional car dealerships have faced challenges due to the rise of online sales and direct-to-consumer strategies, exemplified by companies like Tesla.
- As of 2025, the market for electric vehicles is expected to grow significantly, driven by consumer demand and environmental regulations.
Carvana's investment in Slate Auto represents a strategic response to evolving market demands in the automotive sector, positioning both companies for future growth in the electric vehicle landscape.