How do you survive a tough stretch? Stay resilient and, when your luck turns, be ready to jump at the right opportunity, according to Carvana co-founder and CEO Ernie Garcia.of its value from an all-time high just a year earlier. Many Wall Street investors worried the Tempe, Arizona-based company might never return to profitability.
Carvana had been riding high during the coronavirus pandemic, when the market for used cars surged. The lack of in-person shopping sent customers to online retailers, boosting Carvana's sales. But Carvana initially struggled to keep up with demand, and then its spending on aggressive expansion plans later backfired when the pandemic shutdowns ended. The company ended up
For Garcia, who launched Carvana in 2012 and took it public five years later, the experience helped affirm two important lessons about how to get through a rough patch."In those moments, I think, the biggest risk is if people decide to give up," he told CNBC. "The people in Carvana came together. We did our best work."
Fortunately for Carvana, Garcia said on Thursday, "we had investors that stuck with us and believed in us."That's where the second lesson comes in: You can't be successful with some luck.that reduced Carvana's total debt load by more than $1.2 billion. The deal gave Carvana the flexibility to raise more funding and restructure its business, including slashing more than $1 billion from its annual expenses."These things never happen alone ….