Carvana Aims to Reach 3M Annual Retail Sales

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Carvana reported a 43% increase in retail units sold to a record 596,641 vehicles in 2025, significantly improving the company's trajectory toward its long-term targets. The company now believes it has the capacity and operational capabilities to potentially surpass its goal of selling 3 million retail units annually by 2035, though considerable work remains to execute efficiently at that scale, particularly in vehicle reconditioning.

Why it matters

Carvana's strong growth in 2025 demonstrates the company's ability to rapidly scale its operations and customer offering, positioning it as a major player in the evolving online car sales market. However, the company's valuation and recent earnings estimate revisions suggest investors may have concerns about the company's ability to maintain this pace of expansion.

The details

Carvana reported 43% growth in retail units sold to reach a record 596,641 vehicles in 2025. This strong expansion has improved the company's trajectory toward its long-term targets, with the compound annual growth rates required to meet its retail unit goals for 2030 and 2035 now at 38% and 18% respectively. Carvana attributes this progress to the strength of its customer offering and positive business feedback. The company believes it now has its strongest foundation ever for scaling reconditioning operations, owning sufficient real estate and investing in facilities capable of producing 1.5 million vehicles per year. With 34 reconditioning locations currently operational, Carvana has broadened its geographic reach to enable faster hiring and production scaling.

• Carvana reported its 2025 results in the fourth quarter of 2025.
• The company's long-term targets are for 2030 and 2035.

What’s next

Carvana will need to continue investing in and optimizing its reconditioning operations to support its ambitious growth targets, while also maintaining cost efficiency and high-quality standards.