Carvana has had a rough year.
At its high, Carvana stock was trading around $360 in August 2021, but the profits were short-lived as prices began to steadily drop in November of that year — and haven’t come up since. The online used car retailer has seen stocks steadily decline since late 2021, and now things have gone from bad to worse.
As of Thursday, Carvana was trading around $7.65 — marking a 97% drop this year alone.
Related: Carvana to Lay Off 12% of Its Workforce, Ignites ‘Mass Hysteria’
Carvana CEO and co-founder Ernie Garcia III, along with his father Ernie Garcia II, have experienced parallel losses in wealth alongside the collapse of the company.
Ernie Garcia III started 2021 with a net worth of $7.4 billion, which has now dropped to $3.2 billion, according to Forbes. As for his father, also the biggest shareholder of Carvana, Ernie Garcia II has seen his net worth shrink from $15.9 billion in 2021 to $8.6 billion in 2022.
The somewhat rapid rise and fall of both Carvana and the Garcia father-son duo may be due to the fact that Carvana’s business model was positioned to thrive during the pandemic — the online car retailer buys, sells, and delivers used cars with little to no human interaction — and so experienced unique success during Covid-lockdown, as consumers were hesitant to shop in-person.
However, as people began to trickle back into the world, the model proved to be unsustainable. Along with the volatile used car market, Carvana has had a tough year as far as revenue, and the fate of the company is uncertain as the year comes to a close.
Related: Carvana Stock Could Be Worth As Little As $1 Per Share, Analyst Predicts