Why Carvana is collapsing

There are several reasons why the Carvana stock price has been in a freefall in 2022. First, after experiencing robust growth during the pandemic, the firm has seen it stabilize this year as interest rates rose. Still, Carvana is the second-biggest used-car seller in the US after CarMax.

Will Carvana go bankrupt in 2023

Some analysts believe that Carvana will go bankrupt in 2023 as its costs rise. Others expect that the company will need to raise capital by diluting existing shareholders or selling Adesa at a distressed level. Carvana, on its part, has said that it has adequate resources. In its most recent quarter, the firm said that it had over $316 million in cash against $7.4 billion in debt. Carvana also has access to about $4.4 billion in liquidity.