- Ernie Garcia II and Ernest Garcia III, the father-son team behind online used-vehicle sales platform Carvana, saw $5 billion added to their net worths on Tuesday as the company posted record profits.
- The coronavirus pandemic put used cars in high demand as Americans seek to avoid public transit, Piper Sandler analyst Alexander Potter wrote Tuesday, per Bloomberg. The trend helped Carvana shares rise nearly 140% from the start of the year.
- The father-son team is worth $21.4 billion combined, Bloomberg estimates.
- The younger Garcia cofounded Carvana as a subsidiary of his father’s company, DriveTime Automotive, in 2012 and now serves as its CEO. The elder Garcia owns and runs DriveTime Automotive and funded his son’s launch of Carvana, remaining its largest shareholder.
- Carvana allows customers to buy a used car via its online platform. The purchased car can then be delivered to the customer’s door or picked up at one of over a dozen Carvana vending machines located across the US, according to its website.
- “The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana in metrics that demonstrate strong progress both in growth and towards profitability,” the younger Garcia said in a statement accompanying the earnings release.
- A representative for Carvana did not immediately respond to Business Insider’s request for comment on the Garcias’ net worths.
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