Carvana's Potential Investment in Slate Auto: A Strategic Move into New EVs
The online used car marketplace Carvana is reportedly considering an investment in Slate Auto, a Jeff Bezos-backed electric vehicle startup that has yet to bring any vehicles to market. According to a TechCrunch report, the Delaware Division of Corporation granted Carvana a warrant to buy shares in Slate sometime last year. While Carvana has not confirmed whether it exercised that warrant, the rumor has sparked significant interest in the automotive industry.
Carvana, founded in 2012, built its business on selling used cars through an e-commerce platform with home delivery and its iconic Car Vending Machines. The company has increasingly embraced electric vehicles, with nearly 10% of its sales in August 2025 being fully electric or hybrid models. As the number of off-lease EVs entering the used car market grows, Carvana appears to be positioning itself to capture a larger share of the electric mobility market.
The Slate Auto Connection
Slate Auto, headquartered in Michigan, is a startup backed by Jeff Bezos and other investors. It has not yet launched any production vehicles, making Carvana's interest particularly intriguing. The potential investment could give Carvana access to a pipeline of new EVs, allowing it to diversify beyond the used car market.
Mark Walter, the controlling owner of the Los Angeles Dodgers and CEO of TWG Global, is a key figure linking the two companies. Walter is a substantial investor in Carvana and also invested in Slate Auto during its $650 million Series C funding round in April 2026, led by TWG as a returning investor. This connection suggests that the deal may have already been finalized or is in advanced stages.
Why Carvana Would Want New EVs
Carvana's core business is used cars, but the company has been expanding its EV offerings. In August 2025, Carvana reported that EVs and hybrids accounted for nearly 10% of its sales, reflecting growing consumer demand for electric vehicles. By investing in Slate Auto, Carvana could secure a supply of new EVs to sell directly, potentially bypassing traditional dealership networks and capturing more value from the EV boom.
Additionally, the used EV market is expected to grow significantly as more leased EVs return to the market. Carvana's platform is well-suited to handle this influx, but having a stake in a new EV manufacturer could provide a competitive edge. It would allow Carvana to offer both new and used EVs, catering to a wider range of customers.
Market Implications
If the investment goes through, it could reshape the EV retail landscape. Carvana's online platform and customer experience could help Slate Auto reach buyers without the need for traditional dealerships. This aligns with the trend toward direct-to-consumer sales in the EV industry, as seen with Tesla and Rivian.
However, Slate Auto faces challenges. The startup has yet to produce any vehicles, and the EV market is becoming increasingly crowded. Carvana's investment would provide much-needed capital and distribution channels, but Slate Auto still needs to deliver a compelling product.
Conclusion
The rumored Carvana-Slate Auto deal highlights the convergence of used car retail and new EV manufacturing. As Carvana looks to expand its EV footprint, investing in a startup like Slate Auto could be a strategic move to secure supply and differentiate itself from competitors. Whether the deal has already closed or is still under negotiation, it signals a significant shift in how EVs are bought and sold.
This article is based on reporting by CleanTechnica. Read the original article.
Originally published on cleantechnica.com
