Carvana as a Short-Term Beneficiary of US Tariffs on car Imports
The $1.2 trillion US automotive market is less than 1% penetrated
BTIG predicts a tripling of EBITDA by 2030
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Carvana (CVNA) is an exciting rebound candidate as a leading US online retailer of used cars after a nearly 50% pullback from its year-high. 50% of vehicles sold in the United States are imported. Estimates from J.P. Morgan indicate that the 25% tariffs on auto imports could increase average prices by 9-12% or by $4,000-5,300. In the short term, used car dealers may appeal to consumers with more attractive prices before inflation is expected to take effect there as well. According to Piper Sandler, used car trading mostly occurs within one’s own...
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