Get All Access for $5/mo

Carvana Father-Son Duo's Net Worth Has Collapsed Alongside Company's Value Ernie Garcia III, Carvana's chief executive officer, and his father, Ernie Garcia II, have lost billions as the company's stocks continue to fall.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images
Ernie Garcia III, founder and chief executive officer of Carvana Co., second left, and his father Ernest Garcia II, in 2017.

Carvana has had a rough year.

At its high, Carvana stock was trading around $360 in August 2021, but the profits were short-lived as prices began to steadily drop in November of that year — and haven't come up since. The online used car retailer has seen stocks steadily decline since late 2021, and now things have gone from bad to worse.

As of Wednesday, Carvana was trading around $4.04.

Related: Carvana to Lay Off 12% of Its Workforce, Ignites 'Mass Hysteria'

Carvana CEO and co-founder Ernie Garcia III, along with his father Ernie Garcia II, have experienced parallel losses in wealth alongside the collapse of the company.

Ernie Garcia III started 2021 with a net worth of $7.4 billion, which has now dropped to $3.2 billion, according to Forbes. As for his father, also the biggest shareholder of Carvana, Ernie Garcia II has seen his net worth shrink from $15.9 billion in 2021 to $8.6 billion in 2022.

The somewhat rapid rise and fall of both Carvana and the Garcia father-son duo may be due to the fact that Carvana's business model was positioned to thrive during the pandemic — the online car retailer buys, sells, and delivers used cars with little to no human interaction — and so experienced unique success during Covid-lockdown, as consumers were hesitant to shop in-person.

However, as people began to trickle back into the world, the model proved to be unsustainable. Along with the volatile used car market, Carvana has had a tough year as far as revenue, and the fate of the company is uncertain as the year comes to a close.

Related: Carvana Stock Could Be Worth As Little As $1 Per Share, Analyst Predicts

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.