TechCrunch, citing documents, reports that US used car retailer Carvana has secured an option to invest in electric vehicle startup Slate Auto. This news comes as Carvana is evaluating expanding its new car sales business, and the market is watching to see if the online car sales platform will further enter the vehicle distribution segment.
Carvana advances its new car business.
According to a previous report by The Wall Street Journal, Carvana has acquired several Stellantis dealerships in the United States. When asked about new car sales plans during a recent earnings call, CEO Ernie Garcia III simply stated, "Stay tuned."
If the relevant cooperation is finalized, Carvana may not only continue to operate its used car business, but also leverage its existing direct sales network and delivery system to enter the new car sales market.
Slate is close to opening for pre-orders.
Slate Auto is just weeks away from announcing the final price of its first low-priced electric vehicle. Reports predict a starting price in the mid-range of $25,000, with the company planning to deliver the first vehicles by the end of the year and soon opening pre-orders with non-refundable deposits.
Slate previously stated that it would not use a traditional dealership system, but would instead sell cars directly to consumers. This means that by leveraging Carvana's physical stores and delivery network, Slate may experience some relief in the purchase process and fulfillment.
There were early signs of a relationship between the two parties.
Since emerging from seclusion last year, Slate has been quite cautious about information regarding its investors. TechCrunch previously reported that Bezos and Guggenheim Partners CEO Mark Walter were among its backers. It wasn't until April of this year that Slate confirmed Walter's TWG Global led its Series C funding round, making Walter one of the company's major shareholders.
Walter is also a significant shareholder of Carvana, holding 8% of the company's Class B common stock and approximately 1% of the total voting rights. Within Carvana, only Ernie Garcia III and his father, Ernie Garcia II, have greater control than Walter.
In a regulatory filing this March, Carvana disclosed that it received a warrant against "a privately held consumer products company" in June 2025, without naming the specific company. The filing showed that the warrant had a total value of $1.5 million at the end of 2025 and would vest in stages up to 2029 based on jointly set performance targets. Carvana also mentioned at the time that Mark Walter held a "significant stake" in the warrant issuer.
TechCrunch believes the disclosure may be related to Slate, but Carvana has not confirmed whether the company is the one mentioned in the document.
