However, despite the turnaround, concerns remain over the Garcia family's control of 88% of the company and allegations of a "pump-and-dump" scheme. Additionally, while Carvana has reduced its total debt, a significant portion is due later this decade. The company is currently in the second phase of a three-step restructuring plan, aiming to achieve positive unit economics and return to growth.
Key takeaways:
- Carvana has managed to turn around its operations and debt over the past 18 months, increasing its stock price from $5 to $55, largely due to cost-cutting measures and reducing expenses.
- The company introduced a new AI software platform, 'Carli', to streamline the vehicle reconditioning process, and has also invested in home delivery and car vending machines.
- Despite achieving consistent sales growth since its IPO in 2017, Carvana saw a dip in retail sales in 2022 and 2023, prompting a three-step restructuring plan to return to growth.
- Concerns have been raised about the Garcia family's control of 88% of the company and allegations of a 'pump-and-dump' scheme, and while the company's debt has been reduced, a significant portion is due later this decade.