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It’s Thursday and we’re talking about Carvana’s best performance ever. We’re also discussing Hertz’s decision to sell more of it’s EV inventory, as well as a wild story about the ongoing dispute around the legendary Delorian.
Carvana’s latest earnings are signaling a substantial turnaround with a net income of $49 million in Q1, a 17% increase and a significant recovery from a $286 million loss in the same quarter last year. Shares soared by 37% in premarket trading.
- The Q1 net income of $49 million, marking a major shift from last year's $286 million loss. The figure includes a $75 million gain from stock warrants in Root Inc. Without that, there would have been a $26 million loss posted. Still, the best results in the history of the company.
- Carvana sold 91,878 used vehicles, an increase of 16% year-over-year, signaling robust demand for its online vehicle retail model.
- Despite strong sales, inventory shortages continue, with vehicles listed for an average of 13 days on its website before purchase.
- CFO Mark Jenkins noted that the inventory situation is limiting sales volumes and the company plans to increase production to enhance vehicle selection for customers.
- "This quarter validates our belief in the potential of online retail to drive industry-leading profitability and customer experiences," said CEO Ernie Garcia.
Hertz is set to offload 30,000 electric vehicles from its fleet due to "substantial depreciation" and escalating maintenance costs, highlighting broader challenges in the EV rental market.
- Faced with unexpected high maintenance costs and rapid depreciation, the company plans to sell an additional 10,000 EVs beyond its initial projection of 20,000.
- Hertz reported a $392 million loss for the first quarter, despite a revenue increase of 2%. Depreciation charges significantly contributed to this financial downturn.
- Originally, Hertz had committed to purchasing 100,000 Teslas post-pandemic to modernize its fleet, but the financial reality of maintaining and operating EVs has forced a strategy reversal.
Kat DeLorean, the daughter of the iconic car's creator, faces a trademark challenge in her quest to build a modern DeLorean, despite another company owning her family's name
- When creator John DeLorean died, Stephen Wynne, a mechanic heavily involved in the DeLorean brand, secured the DeLorean trademarks in the 1990s from John’s disputed widow
- Kat had all but abandoned the vehicle and had a young family and was working as a cybersecurity engineer
- In 2020 Ángel Guerra crafted a modern DeLorean model during Covid lockdowns in Spain as a tribute to the iconic DeLorean DMC-12, blending nostalgia with contemporary design elements, the instagram post he made about it blew up
- He reached out to Kat, and her wheels started spinning despite having shunned her automotive history as an elem
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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