🚗Carvana Gets Option to Invest in Slate Auto for $1.5M
Carvana's EV Play Through Slate?
TL;DR
Carvana has been granted an option to invest in electric vehicle startup Slate Auto for $1.5 million. This move could help Carvana expand its reach into new car sales and mitigate logistics challenges.
Carvana has secured a warrant to potentially invest in Slate Auto, an EV startup aiming to sell vehicles directly to customers without traditional dealerships. The option is worth $1.5 million and was granted around the same time as Slate Auto's Series C funding round of $650 million. This strategic move could help Carvana expand its footprint into new car sales while leveraging Slate Auto’s direct-to-consumer model to streamline logistics. If exercised, this warrant could significantly impact both companies' growth strategies.
Key Points
Carvana was granted an option to invest in Slate Auto for $1.5 million, potentially expanding into new car sales.
Slate Auto plans to sell EVs directly to customers starting Q4 2023 without traditional dealerships.
TWG Global led Slate Auto's Series C round, making Mark Walter a significant shareholder with 8% of Carvana stock.
The warrant vests in tranches through 2029 based on jointly determined performance goals for both companies.
Slate Auto expects to announce final pricing and take nonrefundable preorders soon, weeks away from delivery.
Why It Matters
If you're following Carvana's expansion into new car sales or interested in Slate Auto’s direct-to-consumer EV model, this partnership could change how both companies operate. The $1.5 million investment option is a significant step for Carvana to diversify its business and potentially streamline logistics through Slate Auto’s innovative sales approach.
Frequently Asked Questions
Why does this matter?
If you're following Carvana's expansion into new car sales or interested in Slate Auto’s direct-to-consumer EV model, this partnership could change how both companies operate. The $1.5 million investment option is a significant step for Carvana to diversify its business and potentially streamline logistics through Slate Auto’s innovative sales approach.
What happened?
Carvana has been granted an option to invest in electric vehicle startup Slate Auto for $1.5 million. This move could help Carvana expand its reach into new car sales and mitigate logistics challenges.
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