World News – AU – Carvana really did this

Carvana once made billionaires out of his father-son owners What he didn’t do is profit All this and more in The Morning Shift on September 23, 2020

It’s a joke We All Knew But dealer lobbies across the country conspired to kill past hits in state-by-state-only online sales

Texas Gov. Rick Perry likes to say his pro-free market state is « wide open for business »

That wasn’t enough to stop the quarantine momentum of Carvana, now worth the tens of billions, turned its founders into billionaires and still hasn’t made a profit since 2017, as Bloomberg reports in an article titled « Father and His Used Car Salesmen Make $ 5 Billion in One Day: »

Carvana Co has yet to report quarterly profit since its IPO in 2017, but it has made Ernest Garcia II and his son Ernest Garcia III two of the richest people in America

Elder Garcia is the largest shareholder in Phoenix-based Carvana, the online retailer that sells cars in massive vending machines His son, Garcia III, is the CEO of the company Together, they’re worth $ 21.6 billion, according to the Bloomberg Billionaires Index

The company’s shares jumped 32% at 1:45 pm in New York on Tuesday after projecting record earnings and profit margins The stock rose nearly 150% this year as Americans turned to buying household items, entertainment and, increasingly, used cars online

So what’s different about Carvana? Well, there is the pandemic, first and foremost. Let us not, however, overlook Americans’ desire for novelty, according to Bloomberg:

Carvana allows customers to choose from over 19,000 cars and complete their purchases in just 10 minutes, according to its website Buyers have the option of picking up their cars from more than a dozen vending machines located within across the country, using a giant coin Its turnover doubled to $ 3.9 billion last year for selling around 200,000 cars It now sees a path to 2 million sales per year

We’ll get to Tesla in a moment, but Geely wasn’t the type to miss a moment of good press, claiming to have new architecture valid for over 700 km (430 miles) of range It was even written in the Financial Times:

Geely has developed an electric car building system that it plans to sell to its competitors, with the goal of providing one of the few global battery systems that are expected to dominate the industry for decades to come.

The Chinese automaker behind Volvo and Lotus is already in talks with several other automakers to license the technology, including Mercedes-Benz owner Daimler, in which Geely has a stake

The new architecture offers a higher range of up to 700 km and lighter vehicles and can be used to make cars of all sizes, from two-seater to large minibuses carrying a dozen people

The article explains that this is a platform designed to be fully electric from the start rather than modified from an internal combustion setup.Other than that, we don’t get any details about technology

Discussions between Canadian auto workers and Ford have resulted in a tentative deal, as The Detroit News reports:

The union representing Canadian auto workers has reached an interim three-year contractual agreement with Ford Motor Co of Canada to build five new electric vehicles at a plant near Toronto, securing the future of the plant and marking what union leaders see as the first major investment in electric vehicles in Canada

The deal was reached early Tuesday after an overnight negotiation session, Unifor President Jerry Dias said at a press conference

The moment I heard that building Tesla’s new factory would involve cutting down a forest outside Berlin, I knew it was going to be shit The Germans love their forests, almost as much as they do. they like to, uh, run 60 mph in a 15 year old Opel, or, hm, refuse to bake a bun as long as the sausage Go to any German event and you’ll know what I mean In all the cases, here is a summary from Bloomberg:

Tesla’s drive to build its first European car plant faces a key test this week in a public hearing near Berlin, in which local residents lodged hundreds of complaints over a range of issues ranging from water use to noise pollution

The authorities of the Land of Brandenburg, where Tesla is building a factory in Gruenheide to assemble up to 500,000 cars per year, have received more than 400 objections to the project

They focus on the increase in truck traffic in the region, the hundreds of trees cleared to make way for the factory and the scarcity of water resources

« My concerns are manifold, » said local resident Frank Gersdorf as he stood in line to enter town hall for the start of Wednesday’s hearing « The problem is that the end result of the procedure, a green light for Tesla, seems already predetermined. »

Germans hate predetermined building mess almost as much as they hate eating French fries with their hands and not those tiny forks

We have a ton of Battery Day coverage on the site, including questions about whether it’s fair and appropriate for people to buy nine-second cars for $ 150,000 Check them out below:

Okay guys this is getting ridiculous I thought we had reached the pinnacle of quarter mile madness…

Tesla Battery Day took place today, where CEO Elon Musk said the company has the technology or will…

Tomorrow is Tesla Battery Day, where he will likely unveil some battery advancements and…

On September 23, 1933, a group of American geologists landed at the Persian Gulf port of Jubail in…

Why do you think Carvana has been successful in selling cars online when, say, Tesla has struggled between states? What is the Carvana trick?

This is one of the fundamental problems of modern capitalism It should not be possible to make billions with an unprofitable concept

Carvana