What's Going On With Carvana Shares?

Carvana Co CVNA shares are trading lower by 8.5% to $47.54 Tuesday morning. Shares are pulling back after gaining Monday after Wedbush upgraded the stock from Underperform to Neutral and raised its price target from $40 to $48.

Carvana shares have also been volatile amid the ongoing United Auto Workers (UAW) strike. A strike impacts production at large automakers and potentially drive used car prices higher.

Why It Matters

During a UAW strike, production of new vehicles may be disrupted or delayed. As a result, consumers who were planning to buy new cars may turn to the used car market as an alternative. This increased demand for used cars could benefit Carvana, potentially driving up sales and revenues, which could lead to a rise in its stock price.

When new car prices rise due to a strike-related supply shortage, some consumers may opt for more affordable used cars instead. Carvana's online platform offers a range of used vehicles at various price points, making it an attractive option for price-sensitive consumers during a strike.

As this labor dispute takes center stage, here are five crucial insights to fuel the latest developments.

According to data from Benzinga Pro, CVNA has a 52-week high of $57.19 and a 52-week low of $3.55.