Shares of upstart used-vehicle chain Carvana tumbled another 16% Monday, undercut by the company’s struggles with falling prices and waning demand for its products.
Jonas wrote in a note to investors Friday that Carvana’s earnings revealed falling sales, higher expenses per vehicle sold, and a “material exhaustion” of cash.“While the company is continuing to pursue cost cutting actions, we believe a deterioration in the used car market combined with a volatile interest rate/funding environment add material risk to the outlook,” he wrote.
“The slowing of the market is kind of the core issue,” Caldwell said. Some used-car dealers paid top dollar for late-model used vehicles, only to find that prices fell during the past few months, she said. U.S. used vehicle prices are about 30% higher than they were before the coronavirus pandemic began, and were around $31,000 on average in September. But the average price is down was down 1% from its May peak, according to Edmunds.“Cars are an expensive, discretionary, often-financed purchase that inflated much more than other goods in the economy over the last couple years, and it is clearly having an impact on people’s purchasing decisions,” CEO Ernie Garcia said last week.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
16-year-old Garfield Heights girl missing since Sept. 16Gabrielle Walker was described by police as approximately 5′10″ tall, 200 pounds, with brown hair, and brown eyes.
Leer más »
We Tested 16 Stockpots—Here Are Our FavoritesYou can spend close to $400 on a stockpot, but does that get you a better pot? To find out, we tested 16 models and landed on a few favorites.
Leer más »
Real estate update: 16 charts that show where home sales are headed in TucsonFind out how home sales have changed recently, which areas have the most home listings, plus the average sale price and more with these charts and maps.
Leer más »
JayhawkSlant - Quick Recap: Kansas storms past Oklahoma State 37-16
Leer más »
'Chicago's game': 16-inch softball, created on Near South Side, celebrates 135th anniversary16-inch softball was created on Chicago's Near South Side and has a hall of fame in Forest Park. It is now celebrating its 135th anniversary.
Leer más »