Carvana’s EV Trends Report reveals that battery electric and plug-in hybrid vehicles now account for 9% of total retail unit sales, up from just over 2% two years earlier. The company increased its EV model and make combinations by 66% year over year and doubled PHEV offerings, reflecting deliberate inventory build-out. Electrified SUVs drove much of the shift, comprising 44% of EV/PHEV sales in Q2 2025 compared with 24% in Q2 2023. This accelerating adoption highlights both a broadened consumer appetite for electric mobility and the effectiveness of Carvana’s digital-first procurement and merchandising strategy. In the second quarter of 2025, Carvana reported retail unit sales of 143,280 vehicles, a 41% increase compared with the year-ago period, and generated revenue of $4.84 billion, up 42% year over year. Operational efficiencies contributed to a reduction in average delivery time by 0.7 days and a $150 decline in operations cost per unit. Net income for the quarter reached $308 million, representing a 6.4% net margin, while adjusted EBITDA climbed to $601 million, or a 12.4% margin. These results prompted management to raise full-year EBITDA guidance to a range of $2.0 billion–$2.2 billion, underscoring confidence in sustained profitability gains as scale expands. Carvana’s turnaround, marked by an 8,200% equity return over two-plus years, faces a potential challenge from major e-commerce entrants expanding into the used-car arena. The launch of a national online used and certified pre-owned vehicle marketplace by a leading global retailer introduces a scaled dealer-listing model that leverages existing brand strength and customer reach. While current pilot programs remain limited geographically and by participating brands, the long-term threat lies in accelerated network effects and data-driven pricing tools. Investors should monitor dealer adoption trends, platform fee structures and any shifts in consumer acquisition costs as these new channels scale.
Carvana’s EV Trends Report reveals that battery electric and plug-in hybrid vehicles now account for 9% of total retail unit sales, up from just over 2% two years earlier. The company increased its EV model and make combinations by 66% year over year and doubled PHEV offerings, reflecting deliberate inventory build-out. Electrified SUVs drove much of the shift, comprising 44% of EV/PHEV sales in Q2 2025 compared with 24% in Q2 2023. This accelerating adoption highlights both a broadened consumer appetite for electric mobility and the effectiveness of Carvana’s digital-first procurement and merchandising strategy. In the second quarter of 2025, Carvana reported retail unit sales of 143,280 vehicles, a 41% increase compared with the year-ago period, and generated revenue of $4.84 billion, up 42% year over year. Operational efficiencies contributed to a reduction in average delivery time by 0.7 days and a $150 decline in operations cost per unit. Net income for the quarter reached $308 million, representing a 6.4% net margin, while adjusted EBITDA climbed to $601 million, or a 12.4% margin. These results prompted management to raise full-year EBITDA guidance to a range of $2.0 billion–$2.2 billion, underscoring confidence in sustained profitability gains as scale expands. Carvana’s turnaround, marked by an 8,200% equity return over two-plus years, faces a potential challenge from major e-commerce entrants expanding into the used-car arena. The launch of a national online used and certified pre-owned vehicle marketplace by a leading global retailer introduces a scaled dealer-listing model that leverages existing brand strength and customer reach. While current pilot programs remain limited geographically and by participating brands, the long-term threat lies in accelerated network effects and data-driven pricing tools. Investors should monitor dealer adoption trends, platform fee structures and any shifts in consumer acquisition costs as these new channels scale.