The resurrection of Carvana's stock price from its 2022 lows has amounted to a monumental rise in the fortunes of its chief executive and his father.
CEO Ernie Garcia III, who co-founded the company, and his father, Ernie Garcia II, who bankrolled it, have seen a combined $11 billion increase in their net worths since December 2022, thanks to a 3,000% increase in share price from that time, Bloomberg reported Thursday.
When the Carvana stock hit its low point, there were murmurs that the online used car dealership was headed for bankruptcy court, falling after a titanic rise during the pandemic. But the company appears to have righted the ship – at least for now – after restructuring its operations and debt since that time.
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Carvana stock surged this week after the company forecast a surprise rise in current-quarter retail sales and core profit, sending shares up 34% on Thursday.
With that boost, Bloomberg reported, the older Garcia's net worth hit $10.9 billion, up from $3.1 billion just a few years ago. His son's fortune reached $3.8 billion this week.
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The company reported a first-quarter profit of $49 million, compared with analysts' estimates of $31.2 million, according to LSEG data.
Carvana's latest results come as high interest rates prompt consumers to look for deals on second-hand cars instead of buying new ones.
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The company's shares are up about 65% this year after recording an 11-fold rise last year.
Reuters contributed to this report.
