Carvana short-sellers have suffered losses of more than $1 billion this year, according to Bloomberg.
That's after the company's stock surged 56% on Thursday alone on the back of improved second-quarter results.
The used-car dealer's shares have jumped over 400% this year thanks to its successful cost-cutting measures.
Stock traders betting against used-car dealer Carvana have lost more than $1 billion this year.
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 press release.
"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.
The company's stock traded up 4.75% at $25.38 at last check on Friday.
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