In This Story
Used-car sales are elevating more than just Carvana’s profits. The company’s father-son stakeholders added billions to their coffers, thanks to Carvana’s rebound after its record low in December 2022.
Since then, Ernie Garcia II and Ernie Garcia III have collectively boosted their net worth by $11 billion. During that time, shares of Carvana traded as low as $3.62. That decline was in part due to skyrocketing interest rates that kept consumers from purchasing used cars, which in turn pushed Carvana to restructure its debt, amid whispers of a potential bankruptcy.
Nonetheless, shares of Carvana soared over 37% on Thursday, trading at $120, reaching its highest level in years. That was due to better-than-expected results for its first quarter, which featured a 16% sales boost; during that quarter, Carvana sold 91,878 used cars. The used-car dealer’s stock has surged by more than 3,000% since its 2022 record low.
That surge was enough to propel Garcia II’s wealth to $10.9 billion. That’s a big rise from the $3.1 billion he was worth in 2022, according to Bloomberg Billionaires Index. Meanwhile, Garcia III’s wealth rose to $3.8 billion, according the publication’s index.
The duo told Bloomberg TV that the past two years “were a tough run,” but that since then, Carvana’s most recent quarter has “undoubtedly” been its “best quarter” in its history.