Carvana Shares Jump 16.96% on Record Earnings $4.32B Volume Ranks 20th

Carvana (CVNA) surged 16.96% on July 31, 2025, with a trading volume of $4.32 billion, a 213.65% increase from the prior day, ranking it 20th in market activity. The rally followed the company’s record-breaking second-quarter results, driven by a 41% year-over-year rise in vehicle sales to 143,280 units and revenue climbing to $4.84 billion, a new company high.

The stock’s performance was linked to broader market trends, including heightened demand for used vehicles amid rising tariffs on new and imported cars. Carvana’s CFO attributed a spike in April’s gross profit per unit to President Trump’s tariff announcements in late March, which accelerated consumer purchases. The company reported a unit gross profit of $7,426 in Q2, reflecting margin expansion as operational efficiencies and inventory management improvements streamlined transactions.

Management highlighted Carvana’s long-term growth potential, aiming to capture 3 million annual unit sales within five to ten years. Currently holding just 1.5% of the U.S. used car market, the company is expanding its inventory infrastructure and integrating 12 ADESA sites to reduce logistics costs. CEO Ernie Garcia emphasized simplifying operations to drive scalability, stating the model’s “industry-leading profitability” stems from its vertically integrated structure.

Analysts have turned bullish, with BofA reaffirming a “Buy” rating and a $425 price target, citing the shift toward cost-conscious used car purchases. The stock now carries 13 “Buy” ratings, 8 “Hold,” and 2 “Sell” from Wall Street. Carvana’s shares have surged nearly 8,000% from their 2022 lows, marking a dramatic turnaround after bankruptcy speculation two years ago.

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