The Rise of Carvana: Needham Upgrade and New EV Features Drive Stock Higher

Key Takeaways

• Needham analysts upgraded Carvana stock to “buy” from “hold,” calling the company a “secular growth story.”
• The company introduced a new feature that automatically applies federal electric vehicle (EV) tax credits at checkout.
• Carvana shares continued to rise, adding more than 5% in intraday trading Wednesday.

Carvana (CVNA) shares experienced a significant surge on Wednesday following an upgrade from analysts at Needham and the introduction of new features for purchasing electric vehicles (EVs). The digital car-buying company has been identified as a “secular growth story with a cyclical recovery kicker” by Needham analysts Chris Pierce and Mackenzie Holleran, who upgraded their rating on the stock from “hold” to “buy.” This upgrade came with a price target of $160, representing a 27% premium over the previous day’s closing price. Carvana shares, which had traded as low as $25.09 in November, saw a 5.7% increase to $132.79 by midday on Wednesday.

According to the analysts, Carvana is poised to become a profitable secular growth story, with rising retail unit sales and improved gross profit per unit metrics resulting from leveraging a high-fixed-cost base. The company’s innovative approach to the digital car-buying experience has positioned it for success in the evolving automotive industry landscape.

In addition to the upgrade from Needham, Carvana unveiled new features aimed at simplifying the process of purchasing used EVs. The company introduced a streamlined process that allows customers to search for EVs that qualify for the Clean Vehicle Tax Credit and automatically applies up to $4,000 in savings at checkout. This integration of the federal tax credit into the ecommerce experience is designed to enhance convenience and savings for customers interested in buying EVs.

Chief Product Officer Dan Gill highlighted the significance of this new feature, stating, “By integrating the federal tax credit directly into our ecommerce experience, we are driving convenience and savings for the increasing portion of our customers interested in buying EVs.” This strategic move aligns with Carvana’s commitment to providing a seamless and customer-centric car-buying experience that meets the evolving needs of consumers in the automotive market.

The positive reception of these developments was reflected in the continued rise of Carvana shares, which gained more than 5% in intraday trading on Wednesday. Investors and analysts alike have taken note of Carvana’s innovative approach to digital car buying and its ability to adapt to changing consumer preferences and market trends.

In conclusion, Carvana’s recent upgrades and new features have positioned the company for continued growth and success in the competitive automotive industry. The combination of a “secular growth story” with a focus on customer convenience and innovation sets Carvana apart as a key player in the evolving digital car-buying landscape. As the company continues to expand its offerings and enhance the customer experience, investors and consumers alike can expect to see further positive developments from Carvana in the future.

For more information, you can read the original article on Investopedia [here](https://www.investopedia.com/carvana-stock-rises-after-needham-upgrade-new-ev-shopping-features-8675764).