Carvana CEO on 2022: “We are not a perfect company”

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Over the next two years, he said, Carvana will “unwind a lot” of what Garcia described as “strange distortions” at play in the economy over the past two years.

These distortions have included prices for used cars and trucks which skyrocketed and then began to moderate, interest rates rising, and consumer demand for used vehicles strengthening due to the availability of measures. stimulus, then weakening as they grew more anxious about inflationary pressures, said Garcia, who co-founded the retailer in 2012.

“We’re a 10-year-old company, and I think in the automotive industry maybe we’ve been viewed a little differently than we were, say, in capital markets or in venture capital. [space] before that,” Garcia said. “We’ve never been like a sexy company.”

When the coronavirus pandemic first hit in early 2020, it “completely hit” Carvana, Garcia said. The world rebounded quickly, however, he said, and Carvana experienced a window in 2020 and 2021 during which it was considered a “darling” investor. Carvana even posted its first-ever net profit in the second quarter of 2021.

“We’re now back to a place where we’ve spent most of our lives, and I honestly think it’s a comfortable place,” Garcia said. “I think that’s what we’re used to, and it’s kind of easier to stay focused and build, and it’s easier to be motivated when people don’t believe in you than when people do.”

Carvana, which went public in April 2017, saw its market valuation soar to $60 billion at some point last year when its stock price topped $360 per share.

The company’s stock price closed 2.7% lower at $8.32 on Thursday, giving it a market capitalization of $1.48 billion, according to Yahoo Finance.

Carvana ranks #2 on Automotive News’ list of top 100 retailers ranked by used vehicle sales, with retail sales of 425,237 used vehicles in 2021.

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