Driving the news: Carvana $CVNA ( ▼ 5.74% ) reported record second-quarter results with 41% growth in used-vehicle sales and set an ambitious goal of selling 3 million vehicles annually within five to 10 years.
For context: The online retailer sold 143,280 used vehicles in Q2, beating its previous quarterly record, while revenue jumped 42% to $4.8 billion and net income soared to $308 million from $48 million last year.
CFO Mark Jenkins linked the profit boost to "announcements of auto tariffs in late March that drove stronger demand and higher margins."
Why it matters: Carvana’s stock has pulled off one of the most dramatic turnarounds in recent market memory. After hitting a high of over $360 in 2021, shares plunged to just $3.72 in late 2022 as bankruptcy fears and a collapsing used-car market took hold. But over the past year, the stock has surged 8,867% and now trades at $333.59.
What we're watching: Whether Carvana can sustain growth now that the initial tariff-driven boost has faded.
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