Will Carvana become profitable?

In my opinion, as Carvana's scale increases, its operation will become profitable with improved efficiency across the business. According to estimates from Seeking Alpha, Carvana is expected to grow its revenue to more than $50 billion by 2030 at a CAGR of 27.7%. This figure would represent ~5% share of the used-car market, and it is plausible.

How does Carvana work?

After a buyer purchases a car and chooses vending machine delivery, Carvana sends them a specialized token they'll use to slot into the machine to get their car. After inserting the token, the machine automatically retrieves the pre-purchased car and slides it into its own garage-style loading bay before allowing the buyer to get in and drive off.

Does Carvana have a Naysayer on the stock market?

Carvana has no shortage of naysayers on the stock market and it's easy to see why. Escaping bankruptcy is a far cry from operating a healthy business. Carvana is trying to unburden itself of nearly $7 billion in debt that the company added to when it acquired the ADESA wholesale auto auction business.

Is interest expense a problem for Carvana?

For Carvana, interest expense is a big problem given the $6.5 billion of long-term debt sitting on the balance sheet. Interest expense increased from $64 million in the first quarter of 2022 to $159 million in the first quarter of 2023.