Carvana is a used automobile retailer that lets clients discover, tour, purchase and finance automobiles fully on-line. The firm then delivers the automobiles straight to a buyer’s house or permits them to choose up their buy from one in every of Carvana’s 33 fully-automated automobile merchandising machines.
It’s a business mannequin that helped propel the corporate to new heights through the coronavirus pandemic. Supply chain issues choked the manufacturing of latest automobiles, social distancing measures made Carvana’s online-only automobile shopping for expertise fascinating, authorities stimulus packages gave customers further money to spend and rock-bottom rates of interest inspired them to just do that.
In the summer time of 2021, Carvana celebrated its first worthwhile quarter. On Aug. 10, of final yr, Carvana’s inventory reached its all-time intraday excessive of $376.83 a share. Trade publication Automotive News tracks firms by quantity of automobiles bought yearly. The newest knowledge exhibits that in 2021 Carvana bought over 425,000 automobiles, giving the corporate its quantity two spot after used automobile behemoth CarMax. But the sky-high demand that made Carvana a Wall Street star would additionally carry it down.
Watch the video to learn the way Carvana went from Wall Street darling to what some analysts are saying might be the sting of bankruptcy, and to see what the long run could maintain for the used automobile retailer.