New Coverage: Carvana Burns Over $2K Per Vehicle in EBITDA on LTM Basis as Company Builds for Growth That Has Yet to Fully Materialize; Debt-Funded ADESA Acquisition Should Improve Per Unit Cost Structure, but Per Unit EBITDA Likely Still Negative

 Relevant Items:
Link to Tear Sheet
Q1 Shareholder Letter
ADESA U.S. Acquisition Deck
FY 2021 10-K

Cash burn for online used car retailer Carvana has accelerated in recent years despite rapid revenue growth as the company has expanded capacity to fulfill higher volumes. Carvana’s inability to leverage fixed costs was highlighted in its first-quarter results, which were adversely affected by internal logistical challenges and industrywide headwinds related to lower affordability, reduced consumer...