Is Carvana going bankrupt?

Cars
Despite nearly doubling in sales volume during the pandemic, Carvana couldn’t achieve consistent profits. If they liquidate their inventory, it could send used car prices plummeting further in 2023.

Carvana may have to start shaking some change out of its car vending machines.

After a pandemic-era surge in sales, shares of Carvana exploded from a low of $29 to a peak of $360. But after the company still failed to turn a consistent profit, investors bailed, sending shares tumbling to $15. Now, sitting on inventory they paid too much for and facing a used car recession, is Carvana going bust?

It sure looks that way. Even if they get a cash injection, it’s difficult to see how a company that couldn’t turn a profit at the best of times can weather 2023.

Chris Butsch, Contributor