Carvana stock tumbles 43%, books worst day on record as bankruptcy fears rev up

marketwatch via msn ^ | 12/8/2022 | y Mark DeCambre

[RomanSoldier19]

Carvana stock on Wednesday logged its worst day on record on heavy volume and amid growing concerns about its ability to remain a going concern, according to a number of reports about the used-car retailer.

Shares of Carvana Co. closed down nearly 43%. That daily decline exceeded the 38.95% tumble that was registered on Nov. 4 to mark the ugliest day for the stock since the company listed on the New York Stock Exchange in 2017.

[HamiltonJay]

Just another Webvan….

[FlingWingFlyer]

Did anybody try kicking the bottom of the vending machines?

[Wonder Warthog]

"Were these the ones where the car showroom was like a giant circular vending machine where the cars were spiraled toward the top?"

That is one facet of their business. They also deliver directly to your home. I suspect the latter is responsible for a larger fraction of their business.

Dang...I was thinking about using them to get a used vehicle.

[Hatteras]

Pretty sure that obnoxious lady on the commercials didn’t help...

[Manuel OKelley]

Going to be some good deals on used cars by late spring I think

[steveo]

It’s a red car Rudy...

[aMorePerfectUnion]

—>> $270.82 one year ago and today it is $3.83
Wow! It could be worse if we were in a recession....

Or if they hadn’t been vaxxes!

[fuzzylogic]

I’ve heard several stories about customers that buy a car but never get the title. Therefore, they can’t register or insure the vehicle and it sits in their driveway.

The company is dysfunctional.

[newfreep]

A very early film from Steven Spielberg as a producer

The cut-in of Carter’s speech was hilarious topped by blowing up the Mercedes - “That’s to f’n high!”

[Tommy Revolts]

Really nice corporate office at Tempe Town Lake.



An industrial palette is balanced with warm residential accents to encourage employee socializing and collaboration.
Relaxation space is found throughout the workplace with club-like lounge furniture, finishes and fixtures.
Walls become works of art, covered in colorful murals riddled with playful core value statements.
Use of glass throughout the design provides ample daylight as well as transparency without neglecting the need for private spaces.
Elements of surprise include library shelves that open to reveal a hidden bar and a game room hidden behind chain-link curtains.

[1Old Pro]

Corporate Office sounds like a place where no work is encouraged. I guess that was the outcome they wanted, bankruptcy.

[Tommy Revolts]

Yep, you nailed it.

[Made In The USA]

Never understood the model. A gimmicky giant vending machine of cars is somehow a value add for the buyer? Otherwise buying online, having a car delivered is not a unique offer. I assume a small margin on the vehicle and financing, but with the overhed and lack of manufacturer incentives this sounds like it balances on a razor.

[utax]

How can this be? They gave me $6K over MSRP for my three year old Civic!

[moovova]

I wonder if you could convert a Carvana "vending machine" into a house? Might take lots of mini-blinds...

[GreenHornet]

A gimmicky giant vending machine of cars is somehow a value add for the buyer?

Maybe some buyers will try kicking the side of the giant vending machine hoping two cars will drop down.

[willk]

This is too bad. They gave me the best price for my car and came to my home to pick it up. Signed the paperwork in the garage in a few minutes and they handed me the check.

[RomanSoldier19]

they needed inventory at any price until the ceo’s cash out

thats how it can be

Ernie Garcia II, the billionaire father of used car dealership Carvana’s CEO, has sold more than $3.6 billion of company stock since October — raising eyebrows over whether the ownership structure of the firm gives the family too much control.

[utax]

Yeah - six months (and four price reductions) after i sold them the car one of their marketplace partners sold it for $800 less than they paid me.

And based on how little time they spent inspecting the car (near zero) i would be very reluctant to buy a car from them.