Dear Slate - you need to show these things before I'll buy

[atx_ev]

You won’t get this in every state. Tesla, Rivian, and Lucid all struggle with sales in certain states, due to state laws that restrict or ban direct-to-consumer auto sales. Even Tesla has to jump through hoops to sell vehicles in Texas, where they are headquartered. Slate will be no different — in fact, Slate may well face restrictions in Indiana, even though their factory is there.

If “every state” is a precondition for you, a lot of EV brands (not just Slate) could be out.

it sounds like slate is going to be selling through an existing dealer network. So there must be national chains that can act as dealers (carmax/autonation/lithia or something?) that wont take too much margin.

 

[KevinRS]

Yeah, at first all that was mentioned was direct sales, but recently there has been mention of a dealer chain, so not sure what's up with that. Also, I think all those chains are used car dealers, do states require a different dealer license for new cars? That might complicate that idea

 

[SichuanHot]

it sounds like slate is going to be selling through an existing dealer network. So there must be national chains that can act as dealers (carmax/autonation/lithia or something?) that wont take too much margin.

Isn't Amazon gearing up to start selling used cars through Amazon Autos soon? Perhaps Amazon will serve as the "dealer network" for Slate. The website is still in beta but the fact it's up and running could mean a future sales outlet for Slate.

 

[KevinRS]

The issue is state laws and their definition of "car dealer"
Car dealerships have to get licenses from the state they operate in, and many states have laws banning manufacturers operating as dealerships, owning dealerships, etc. Some states allow it if there are no dealerships, and some allow only if they started before a certain date, which lets tesla in, but no one else.

For Amazon to sell used cars in a state, they will have to get licensed by that individual state, and some states may say no.
The car dealership associations have lobbyists that have successfully got these laws passed to protect the dealerships, mainly to keep a manufacturer from undercutting them.

 

[AZFox]

it sounds like slate is going to be selling through an existing dealer network. So there must be national chains that can act as dealers (carmax/autonation/lithia or something?) that wont take too much margin.

Yeah, at first all that was mentioned was direct sales, but recently there has been mention of a dealer chain, so not sure what's up with that. Also, I think all those chains are used car dealers, do states require a different dealer license for new cars? That might complicate that idea

At the risk of quibbling...

They're using a direct-to-consumer model. Instead of dealers, there will be Delivery Partners.

 

[sodamo]

At the risk of quibbling...

They're using a direct-to-consumer model. Instead of dealers, there will be Delivery Partners.

I’m assuming there will be a compensation model for Delivery Partners, hopefully something controlled by Slate and not the “fleece em for all you can get” dealership model.

 

[AZFox]

I’m assuming there will be a compensation model for Delivery Partners, hopefully something controlled by Slate and not the “fleece em for all you can get” dealership model.

Stealership model.

 

[KevinRS]

From an EV site

Can I buy a vehicle from Tesla, Rivian, Lucid, or some other EV-only manufacturer if I don’t live in a state that allows gives consumers the freedom to buy direct?
Yes, you can still buy vehicles from these companies by ordering online. The vehicle’s delivery will usually be to a designated pick-up location or to your home via a delivery truck. But when state laws prevent direct sales, some EV companies cannot establish physical retail locations, conduct test drives, hire product specialists to answer questions, or teach customers about new vehicle technologies, and will likely require maintenance to be performed out of state.

So it looks like depending on the state, Slate may have to dance through a bunch of loopholes to even have someone there to talk about the truck, like at the events, or later do test drives.
I think Slate is getting around the service part with a 3rd party service partner, but I wouldn't be surprised if the tour just never gets to some states.

 

[sodamo]

From an EV site

So it looks like depending on the state, Slate may have to dance through a bunch of loopholes to even have someone there to talk about the truck, like at the events, or later do test drives.
I think Slate is getting around the service part with a 3rd party service partner, but I wouldn't be surprised if the tour just never gets to some states.

TBH, not expecting the tour to get here - ever.

 

[KevinRS]

TBH, not expecting the tour to get here - ever.

Yeah, Hawaii, Alaska probably won't get the tour anyway, due to the logistics of it alone. Kind of wondering if they might skip some states like Montana where there may be a legit need for AWD.

 

[sodamo]

Yeah, Hawaii, Alaska probably won't get the tour anyway, due to the logistics of it alone. Kind of wondering if they might skip some states like Montana where there may be a legit need for AWD.

Wouldn’t make economic sense to me.
But I would willingly be an early adopter Ambassador. Hmm, 3 days each Kauai, Oahu, Maui, they pay transport for my Slate, my hotel and a meal, then ship home to Big Island and I’ll give them more show and tell. They couldn’t do any cheaper.

 

[Doctors Do Little]

TBH, not expecting the tour to get here - ever.

Why bring the mountain to Mohammed?

 

[YDR37]

Based on Slate's FAQs, it sounds like sales, delivery, and service will be handled by completely different entities. This would be different not only from the traditional dealership model (as used, for example, by Ford and Toyota), but also from the direct-to-consumer model (as used, for example, by Tesla and Rivian).

...we won’t have traditional dealerships. Instead, we’ve made it easy to buy a Slate directly from us with transparent pricing and simplified online ordering.

OK, so you will be able to order a Slate online, directly from the manufacturer.

Slate has partnered with a national logistics and distribution partner making picking up your Slate friction free in most areas.

OK, so Slate will have a (currently unnamed) partner that will handle delivery.

Through an upcoming national partnership, we will be offering authorized Slate service at more than 2500 locations throughout the US, and we will be working to expand to more locations.

OK, so Slate will have another (currently unnamed) partner to handle service.

In theory, then, Slate could sell, deliver, and service vehicles without the need for any physical Slate-branded dealerships or stores. If they can pull this off, there would be a huge cost savings.

The problem I see: what if you want to personally inspect or test-drive a Slate before you buy? The FAQs say "Beginning in 2026, we’ll have vehicles available for demonstration drives," but it's not clear where. I think that most buyers are going to want some hands-on experience before they drop $25,000+ on a new vehicle. A manufacturer can easily provide this if they have a nationwide network of dealerships or stores, but it's not obvious how this would be accomplished without such a network.

 

[KevinRS]

My read on the test drives was the first thing is some time next year as they are getting models off the line that are as least nearly identical to what they will be delivering, the "tour" that they are currently doing would convert to one with test drives for reservation holders. You'd likely need to schedule a time slot in advance, and locations will probably be where there is a density of reservations. Once they get beyond reservations and are looking to sell to more people, they will probably have to set up something more.