Carvana secures warrant in Bezos-backed Slate Auto's $650M round

Carvana has secured the right to invest in Jeff Bezos-backed electric-vehicle startup Slate Auto, marking the online used-car retailer's first move into new-vehicle sales.

Carvana has been granted a warrant to purchase shares in Slate Auto, the electric-vehicle startup backed by Jeff Bezos, as the online retailer prepares to expand into new-car sales, according to documents obtained by TechCrunch.

The warrant, valued at $1.5 million at the end of 2025, vests in tranches through 2029 based on jointly determined performance goals, Carvana disclosed in a March regulatory filing without naming the startup. It's not clear whether Carvana has exercised the warrant or how many shares it is allowed to buy. Carvana declined to comment, and Slate Auto didn't respond to requests for comment.

Slate Auto is weeks away from announcing final pricing and accepting non-refundable preorders for its low-cost EV, expected to start in the mid-$20,000 range, with first deliveries planned by year-end. The company is raising a $650 million Series C round led by TWG Global, the firm of Guggenheim Partners CEO Mark Walter, who also holds an 8% stake in Carvana's Class B common stock and 1% of overall voting power. Only CEO Ernie Garcia III and his son, Ernie Garcia II, have more control.

New Car Sales Push

Carvana's investment comes as the company looks beyond its core used-car business. The retailer has purchased a number of Stellantis dealerships across the US, according to the Wall Street Journal, and CEO Ernie Garcia III told analysts on a recent earnings call to "stay tuned" when asked about new-car sales.

The move into new vehicles represents a strategic shift for Carvana, which built its business on buying, reconditioning, and selling used cars through its online platform and automated vending machines. Adding new-car sales would open a new revenue stream and diversify the company beyond the cyclical used-car market, where inventory availability and pricing fluctuate with lease returns and trade-in volumes.

Shared Investor, Shared Future

The deal is also notable for the overlapping investor base. Walter's TWG Global led Slate's Series C, making the Guggenheim CEO one of the startup's largest shareholders. His stake in Carvana gives him influence over both companies, raising the possibility of deeper integration between the online retailer and the EV startup.

Slate has said it will sell vehicles directly to consumers, similar to Tesla and Rivian, but has offered little detail about how it plans to handle logistics. Selling through Carvana's physical locations could help mitigate those challenges while boosting the startup's brand awareness among Carvana's customer base.

For Carvana, the partnership provides exposure to the fast-growing EV market without the capital intensity of building its own electric vehicle. The company's Q4 2025 results showed strong momentum — revenue surged 58% to $5.6 billion, and net income soared to $857 million from $79 million a year earlier — though the stock has fallen more than 20% from its January peak amid fraud allegations related to its subprime loan accounting at related entity Bridgecrest.

Slate Auto emerged from stealth last year after TechCrunch first revealed that Bezos and Walter were backing the company. The startup has been tight-lipped about its full investor roster but has positioned its low-cost EV as a competitor to Tesla's planned affordable model and legacy automakers' electric offerings.

This article is for informational purposes only and does not constitute investment advice.