Carvana's EV Sales Surge as eCommerce Model Delivers Record Results

Core Insights - Carvana reported that electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) constituted 9% of total vehicles sold in Q2 2025, a significant increase from just over 2% in Q2 2023, indicating a growing consumer appetite for electrified vehicles [1][2] - The company's EV and PHEV sales saw a fourfold increase over two years, with electrified SUVs accounting for 44% of these sales, nearly doubling from 24% in 2023 [2] - Carvana's retail performance improved overall, with Q2 unit sales rising 41% year over year to 143,280 vehicles and revenue increasing by 42% to $4.84 billion [3][4] Operational Metrics - Delivery times improved by 0.7 days, sales per customer service advocate increased by 23%, and operational costs per unit decreased by $150 [4] - The company achieved a net income of $308 million with a 6.4% margin, and adjusted EBITDA reached $601 million, or a 12.4% margin, leading to an increase in full-year EBITDA guidance to between $2 billion and $2.2 billion [4] Strategic Insights - Carvana's growth is attributed to three long-term drivers: improving customer offerings, increasing awareness and trust, and expanding inventory selection [5] - The performance reflects the intersection of rising EV demand and effective digital-first retail execution, suggesting momentum in the EV market despite the modest absolute share [5]