Carvana’s Tale of Debt and Losses Looks a Lot Like Old Hertz
- Company lost $7,400 on every vehicle sold in fourth quarter
- Carvana’s share price fell 21% Friday on earnings report
Vehicles are placed for sale at a Carvana Vending Machine location in Novi, Michigan, US.
Photographer: Emily Elconin/BloombergThis article is for subscribers only.
Shares of Carvana Co. more than doubled in the month leading up to Thursday’s awful fourth-quarter earnings report.
By the time the numbers hit shortly after the US market close, it was clear that optimism had been gravely misplaced. The online used-car dealer had lost almost $7,400 on every vehicle it sold in the quarter. Sales tumbled 23%, and it had burned through $1.8 billion in cash.