CVNA Stock latest news today: Carvana stock skyrockets 18% after record sales as buyers flock to used cars amid tariff surge

Carvana CVNA stock today: Online used car retailer Carvana (CVNA) shares surged nearly 18% on Thursday, reaching its highest levels since 2021, after the firm posted record-breaking second-quarter earnings, as per a report. The results highlighted a sharp increase in consumer demand for used vehicles, driven in part by rising tariffs on new and imported cars, according to Yahoo Finance.

Carvana Stock Soars Nearly 18% After Blowout Quarter and Record Sales

Carvana stock rose after investors reacted to the company’s strongest quarter in its history, as per the report. Carvana reported $4.84 billion in revenue, up more than 40% year-over-year, and said it sold over 143,000 vehicles, a 41% increase from the same quarter last year, as reported by Yahoo Finance.
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Tariffs Drive Surge in Used Car Demand

Gross profit per unit rose to $7,426, with the most notable spike occurring in April, as per the report. According to CFO Mark Jenkins, that boost was closely tied to US president Donald Trump’s tariff announcements in late March, which triggered a wave of demand, according to Yahoo Finance.

Jenkins said during the company’s earnings call on Wednesday, “That higher April retail GPU [can] be really linked to the announcements of auto tariffs in late March that drove stronger demand and higher margins,” as quoted in the report.

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Carvana’s Online-First Model Captures Market Shift

As the cost of new vehicles continues to climb, consumers are turning to used cars, and Carvana’s online-first model is capitalizing on the shift, as per the Yahoo Finance report.Carvana’s unique retail model allows customers to browse, finance, and purchase vehicles online, and even pick them up from its iconic multistory “car vending machines” across the country, like its tower in Nashville, according to Yahoo Finance.

Carvana’s Remarkable Comeback: From Bankruptcy Fears to Stock Surge

Just about two years ago, Carvana’s future looked bleak. The company’s stock had fallen below $4 in late 2022 amid bankruptcy concerns, as per the report. Since then, shares have rebounded nearly 8,000%, transforming the company into one of the most remarkable comeback stories in recent market history, according to Yahoo Finance.

Carvana posted its first-ever annual profit last year, and CEO Ernie Garcia told analysts last year that, “It’s very hard for a group to go through a period like the last two years and not disintegrate under the pressure. We didn’t disintegrate,” as quoted in the report.

Wall Street Turns Bullish on Carvana Stock

BofA analyst Michael McGovern, who reiterated a Buy rating and set a $425 price target, said that “We think CVNA is also benefitting from a mix-shift towards Used, as cost conscious customers seek value,” as quoted in the report.

Wall Street sentiment has followed suit, with 13 analysts rating the stock a ‘Buy’, 8 rating a neutral stance with ‘Hold’, and only 2 recommending a ‘Sell’, as reported by Yahoo Finance.

Carvana Sets Bold Growth Targets

Looking ahead, the company aims to sell 3 million vehicles annually within five to ten years, as per Yahoo Finance. Currently, it holds just 1.5% of the US used car market, suggesting plenty of room for growth, according to the report.

Garcia said, “Our machine is getting simpler. We’re adding additional locations to hold inventory and to recondition inventory. We’re making it so there’s less work per transaction. And I think all of that aids growth,” as quoted in the Yahoo Finance report.

FAQs

Why did Carvana stock go up today?
Carvana stock surged nearly 18% after it reported record vehicle sales and revenue, driven by increased demand for used cars due to rising tariffs, as per the Yahoo Finance report.

What were Carvana’s Q2 earnings?
Carvana posted $4.84 billion in revenue and sold over 143,000 vehicles in Q2 2025, its best quarter ever.