Tesla's Electric Vehicles Drive Used Car Sales on Carvana, Amazon Enters Used Car Market.

Carvana's used car sales data shows 9% of unit sales were EVs and PHEVs in Q2 2025, up from 2% in Q2 2023. Tesla vehicles dominated used EV sales, with the Model 3, Model Y, and Model S in the top 3 spots. SUVs made up 44% of EV and PHEV sales, up from 24% in Q2 2023. Used car prices have hit record highs due to Trump tariffs, with prices rising 6.3% YoY.

Carvana Co. (NYSE: CVNA), the online used car retailer, reported significant growth in its Q2 2025 sales, with a notable increase in the proportion of electric and plug-in hybrid vehicles (EVs and PHEVs) sold. According to the company's EV Trends Report, electrified vehicles accounted for nearly 9% of its unit sales in Q2 2025, up from just over 2% in Q2 2023 [1].

This substantial growth can be attributed to several factors. Firstly, the company expanded its selection of electrified vehicles, offering 66% more EV make/model combinations and doubling PHEV options compared to Q2 2023 [1]. Secondly, SUVs emerged as the dominant body style for EV and PHEV sales, comprising nearly 44% of all sales in Q2 2025, up from 24% in Q2 2023 [1].

Tesla vehicles, particularly the Model 3, Model Y, and Model S, dominated the used EV sales market. This trend aligns with Tesla's aggressive marketing strategies and the increasing demand for electric vehicles globally.

Carvana's overall retail unit sales surged by 41% year-over-year in Q2 2025, reaching 143,280 vehicles sold [2]. The company's revenue hit $4.84 billion, representing a 42% increase from the same period in 2024, while net income reached $308 million [2]. These strong financial results reflect the company's ability to pair volume growth with profitability, challenging traditional automotive retail models.

The used car market has been influenced by various factors, including Trump tariffs, which have contributed to record highs in used car prices. According to the latest data, used car prices have risen by 6.3% year-over-year, further emphasizing the demand for affordable and reliable used electric vehicles [3].

In conclusion, Carvana's Q2 2025 sales data highlights the growing importance of electric and plug-in hybrid vehicles in the used car market. The company's strategic expansion of its EV selection and the dominance of SUVs in EV sales are key drivers of this trend. As the market continues to evolve, Carvana's ability to adapt and capitalize on these shifts will be crucial for its future growth.

References:
[1] https://investors.carvana.com/news-releases/2025/08-06-2025-130006810
[2] https://www.cbtnews.com/carvana-posts-record-q2-results-lifts-2025-forecast-amid-profit-surge/
[3] https://www.indmoney.com/us-stocks/tesla-inc-share-price-tsla