Retail

Carvana’s Q2 car sales jump 25% during coronavirus, but losses hit $160M

August 10, 2020

Carvana, an e-commerce platform for buying used cars that delivers cars to customers with a massive, coin-operated vending machine, posted a 25% gain in vehicle sales for the second quarter, buoyed by an increase in e-commerce during the coronavirus pandemic, according to a report in The Wall Street Journal. Revenue rose 13% to $1.12 billion for the quarter.

The 8-year-old company has attracted competitors and has yet to earn a profit. The company lost $160 million in the second quarter.

Analysts do not expect the company to become profitable on a net basis until 2023, according to a FactSet poll.

The company's stock rose 28%, reaching $222.99, in response to the report, as results surpassed Wall Street's expectations.

The company expects to sell up to 265,000 cars this year, marking close to a nearly 50% increase over last year.

For an update on how the coronavirus has affected the kiosk industry, click here.

Image courtesy of Carvana.