, short positions, which make up around 56% of the Arizona-based company's outstanding shares, have racked up losses amounting to $1.04 billion so far in 2023, per S3 Partners.
The setback to short sellers arises from Carvana's staggering stock-market performance. The shares have surged about 422% this year, buoyed by the company's cost-cutting measures in response to the Federal Reserve's aggressive interest-rate increases. On Thursday alone, the stock of the e-commerce company for buying and selling used vehicles jumped 56% after it revised upward its second-quarter results to exceed Wall Street forecasts.
"Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected," Carvana CEO Ernie Garcia said in a"The team's persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan," he added.
Carvana said it expects total gross profit per unit to hit above $6,000 in the second quarter of 2023.