TEMPE, Ariz.–Indicative of the strength of the used car market and one company’s own turnaround, Carvana now has a market cap that exceeds that of Ford and General Motors.
Given price increases, demand for vehicles demand has been skyrocketing, and Carvana is benefitting in a major way. Over the last 10 day’s Carvana’s stock is up 8.6% to $434.35 per share. That performance has resulted in the used vehicle seller being added to the benchmark S&P 500 index, a move that will take place later this month, and it marks a dramatic turnaround for Carvana, in general, Reuters noted.
In 2022, Carvana stock sunk to record lows amid fears that the company was on the verge of bankruptcy, which coincided with a massive drop in demand for used vehicles, Reuters reminded.
8,000% Increase
“Since then, however, the company’s stock has surged 8,000% and nearly doubled throughout the course of 2025 alone, a rebound that occurred not only due to rising demand for used vehicles amid soaring prices for new ones, but also, Carvana’s improved cost controls,” Reuters reported.
Carvana’s market cap now stands at $87 billion – more than Ford at $52 billion, and General Motors at $71 billion. Carvana stock is trading for 57.4 times its forward earnings, compared to single digits for Ford and GM, as well.
