TSX gains after CPI shows US inflation rose 3%
SAN DIEGO - Online used car retailer Carvana (NYSE:CVNA), currently valued at over $73 billion and showing strong financial health according to InvestingPro analysis, announced Tuesday the expansion of its same-day vehicle delivery service to the greater San Diego area, according to a company press release.
Select customers in San Diego can now receive their newly purchased vehicles on the same day they place an order through Carvana’s website. The service also extends to sellers, who can arrange for same-day pickup or drop-off after completing the online appraisal process. The expansion comes as Carvana demonstrates robust growth, with revenue reaching $16.27 billion in the last twelve months and analysts forecasting continued sales growth of 39% this year.
The same-day delivery option builds upon Carvana’s existing e-commerce platform, which allows customers to shop for pre-owned vehicles, arrange financing, and trade in their current cars entirely online.
"We’ve already introduced thousands of San Diego customers to a new way to buy or sell a car, and with this launch, we’re proud to make the Carvana experience even faster and more convenient," said Jacqueline Hearns, Carvana’s senior director of market operations and expansion.
The company states the expedited service is made possible through its logistics fleet and regional Inspection and Reconditioning Centers.
Carvana first introduced same-day delivery in Arizona and has since expanded the service to select markets across more than 20 states. The company plans to continue rolling out the service to additional areas in the coming months.
Founded in 2013, Carvana operates an online platform for buying and selling used vehicles, offering home delivery or pickup options as alternatives to traditional dealership visits. The company maintains strong liquidity with current assets four times its short-term obligations, and has generated $563 million in net income over the last twelve months. Investors seeking deeper insights into Carvana’s financial performance can access comprehensive analysis through InvestingPro, which features over 15 additional key insights and detailed financial metrics.
In other recent news, Carvana has seen significant developments concerning its financial outlook and market positioning. JPMorgan has raised its price target for Carvana to $490, maintaining an Overweight rating, and expects the company to exceed earnings expectations in the upcoming quarters. The bank projects an EBITDA of $655 million for the third quarter of 2025, surpassing the consensus estimate of $595 million, and $575 million for the fourth quarter, compared to the consensus of $520 million. Morgan Stanley also reiterated its Overweight rating with a price target of $450, citing improvements in prime auto performance. Meanwhile, BTIG reaffirmed its Buy rating and $450 price target despite concerns about Carvana’s financing activities, amidst the bankruptcy of sub-prime lender Tricolor.
Moody’s upgraded Carvana’s credit rating to B2, reflecting improvements in operating performance and debt reduction efforts. The outlook remains positive, with senior secured global notes ratings also upgraded to B2. Additionally, Jefferies upgraded Carvana’s stock rating from Hold to Buy, raising the price target to $475, based on Carvana’s potential to capitalize on the shift to digital in the used car market. These developments highlight Carvana’s evolving position in the market and its financial trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.