You might remember Carvana.
They made news last August for emerging with a myriad of problems.
Check out the keynote speakers and details for The Vault 2023 and secure your tickets!
The car startup was — on its face — quite genius. You can buy a car online, go to some garage and just pick it up or they even bring it to your house. Easy, simple process, right?
The situation got so bad that in Florida, the Department of Highway Safety and Motor Vehicles had to file formal complaints against the company.
This was discovered after the man, who bought the car for his wife, took it to get serviced by the dealership. The car’s internal parts didn’t match its VIN number. The car was a much older 2017 Maserati with some modifications added on.
So not only was the car stolen, but Carvana advertised the wrong car.
But still, Carvana soldiered on, and their stock has shockingly risen. They’ll be making $50 million in adjusted earnings in Q2.
Ahead of their shareholders conference, founder and CEO Ernie Garcia had some good news, as ZeroHedge reports. Their last quarter was record breaking in terms of profit.
“Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected.”
And it jumped 27% in pre-market trading.
In 2022, they lost 98% of their value.
But they did sell off a ton of inventory in part of a serious restructuring effort. It helped them avoid bankruptcy, which it came close to.
Now the battle is to have enough distance away from the disastrous news stories. In the past six months, there haven’t been any title issues with purchases from Carvana. They seemed to have nipped that snag in the bud. The question is, can they keep it up?
Add comment