Carvana was one of the pandemic era’s biggest corporate winners. As consumers embraced online car buying and used-car prices surged, the company became a market darling and a symbol of digital disruption. By 2022, it had hit a wall.
Interest rates were rising, used-car demand was weakening, and financing was getting more expensive. Carvana, which had been expanding rapidly for years and had prepared for another big growth year, suddenly found itself under severe pressure. Its stock collapsed 99% from its peak, and analysts questioned whether it would survive.
