Mounting financial losses, a plunging stock price, nervous creditors and regulatory roadblocks in several states have online used-car giant Carvana Co. on the ropes as it enters 2023 with used-market conditions in decline and facing doubts about its ability to survive without major restructuring.
Carvana must tread carefully in the early months of 2023 as it tries to reduce cash burn, cut costs and squeeze more profit from each used car and truck it sells, say financial analysts closely watching the former stock market darling.
This year has marked a severe tumble for Carvana from the euphoric heights it reached in 2021, when its market valuation at one point topped $60 billion and investors were eager to go along for the ride. Now, Carvana's market capitalization is below $1 billion after a year in which a slowing market, soaring inflation and interest rate spikes shackled its growth plans. The company made sweeping job cuts in May and again i…