Online used-car retailer Carvana acquired a warrant to invest in the Jeff Bezos-backed electric vehicle startup Slate Auto ahead of the latter’s highly anticipated sales launch. The tie-up is designed to provide massive exposure for the low-cost EV truck as Carvana pivots into selling new vehicles.
Key Details of the Deal and Launch.
- The Strategic Link: Delaware corporate filings revealed Carvana secured a warrant to purchase shares in Slate Auto around the time the startup closed a massive $650 million Series C funding round.
- Carvana’s Expansion: The arrangement coincides with Carvana acquiring physical Stellantis dealerships across the United States, signaling the retailer’s expansion into selling brand-new vehicles alongside its traditional used inventory.
- The EV Truck: Backed by Jeff Bezos and industry veterans, Slate Auto aims to disrupt the market with a highly affordable, spartan utility truck.
- Pricing and Simplicity: The base EV model is targeted at an aggressively low price point of roughly $20,000 (with monthly payments expected to be under $400). To cut costs, the vehicle cuts back on high-tech frills and is famously delivered without paint, leaving customization entirely up to the buyer.
- Sales Rollout: Slate has raised approximately $700 million to fund vehicle design, a factory in Indiana, and is preparing to open non-refundable pre-orders ahead of its deliveries.
If you are interested in the startup’s progress, I can:
- Provide more details on the Slate EV truck specs (range, seating, and performance).
- Explain how Carvana’s direct-to-consumer sales model works for new car buyers.
- Share updates on their manufacturing capacity and delivery timeline.
