Accustomed to sales growth, Carvana was simply unprepared for the market drop it encountered, the company said.
Last year was a wreck for Carvana, the online used-car seller known for its tall glass “car vending machines.” In 2022, the company sold fewer cars than it had the year before — the first time that’s happened in nine years — and the company’s losses grew as the used car market soured. Overall, Carvana’s losses ballooned to $806 million, or $7.61 per class A share of stock, compared to $89 million in the last quarter of 2021. For the full year, the company lost $1.
The number of cars Carvana sold in the fourth quarter last year dropped 23% from a year earlier to about 87,000 while overall revenue declined 24%. For the full year, Carvana sold 3% fewer vehicles while revenue, at $13.6 billion, increased 6%. Carvana has been aggressively reducing its inventories, the company said, cutting the number of vehicles held in inventory by 27% in the fourth quarter. “This last year has been a massive change in priorities for the company.
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