Carvana Stock Is Rising Wednesday: What's Driving The Action?

Carvana Co CVNA shares are trading higher Wednesday. The company launched a new streamlined shopping experience. The stock was also upgraded by Needham.

What Happened: Carvana on Wednesday announced the launch of new features that make shopping for used EVs or plug-in hybrids easier and more accessible for its customers. 

The company’s new streamlined process highlights vehicles that qualify for the Clean Vehicle Tax Credit in the search experience and allows eligible customers to apply savings at checkout. Customers can now seamlessly access up-front savings of up to $4,000 on the price of the vehicle.

“Carvana has always believed in using technology to make the car buying process easier, more transparent and more accessible for our customers. By integrating the federal tax credit directly into our ecommerce experience, we are driving convenience and savings for the increasing portion of our customers interested in buying EVs,” said Dan Gill, chief product officer at Carvana.

Carvana noted that it has sold EVs since 2013 and continues to expand its selection of EVs to meet customer demand across a range of different price points.

Needham analyst Chris Pierce upgraded Carvana from Hold to Buy Wednesday morning and set a price target of $160. Pierce joins a growing list of analysts that have weighed in on the stock since the company provided an update on its operating plan and capital structure at the William Blair annual Growth Stock Conference in early June.

Analysts at JMP Securities and JPMorgan recently raised their price targets to $150 from $135 and $130, respectively. Evercore raised its price target to $135 from $118, while Wedbush and Needham reiterated Neutral ratings.

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CVNA Price Action: Carvana shares are up approximately 137% year-to-date. The stock was up 4.06% at $130.80 at the time of publication, according to Benzinga Pro.

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