The company’s stock has plummeted from its pandemic highs.
A vending machine for cars is one of those crazy business ideas that sounds fake — until you spot one on the side of the highway.
Carvana has 34 vending machines across the US, and the glass structures can hold anywhere from ~20 to ~40 vehicles.
When in-person shopping slowed during the pandemic, Carvana’s online business boomed, pushing its stock from $29.35 in March 2020 to $360.98 in August 2021.
But what goes up, must come down
Just over a year later, Carvana’s stock is down 98% from its 2021 highs, and some analysts believe bankruptcy is inevitable.
What’s to blame?
First, the easing of covid restrictions has led consumers to shop in person again.
Second, despite used car prices falling, higher interest rates have made it harder to finance a car, draining demand.
As a result, Carvana’s vending machines aren’t churning through cars like they used to, and could end up being a monument to a future that was ahead of its time.