Driving the Future: Carvana's Electrified Ascent in the Online Auto Market
The Explosive Growth of Electric Vehicle Transactions on Carvana's Platform
Carvana, a company that has recently captivated financial markets with its stock recovery, is making considerable strides in the electric vehicle sector. During the second quarter of 2025, nearly one out of every ten vehicles sold by Carvana was an electric or plug-in hybrid model. This marks a substantial increase from just 2.3% of transactions in the second quarter of 2023, underscoring a swift and notable change in consumer demand and Carvana's successful adaptation to it. The expansion of Carvana's inventory has been a critical factor in facilitating this growth.
Leading Electric and Plug-in Hybrid Models Driving Carvana's Sales Momentum
While sport utility vehicles (SUVs) have generally overtaken sedans and hatchbacks as the preferred body style for EV and PHEV buyers, certain models stand out. Tesla's Model 3, Model Y, and Model S were the top-selling battery electric vehicles (BEVs) on Carvana's platform during Q2 2025. Following closely were Chevrolet's Bolt EV and Nissan's Leaf. In the plug-in hybrid electric vehicle (PHEV) category, Jeep's Wrangler Unlimited 4xe, Wrangler 4xe, and Grand Cherokee 4xe secured the top three spots, indicating a strong preference for Jeep's electrified off-roaders. Chrysler's Pacifica Hybrid and Chevrolet's Volt also performed well within the top five PHEV sales.
Expanding Selection: Carvana's Commitment to Diverse EV Offerings
Between Q2 2023 and Q2 2025, Carvana significantly broadened its range of electric and plug-in hybrid vehicle options. The number of unique EV models available grew from approximately 55 to over 90, while PHEV options doubled from around 40 to more than 85. This represents a 66% increase in EV make/model combinations and a doubling of PHEV choices. The shift towards SUVs is particularly pronounced, with almost 44% of all Carvana EV and PHEV sales in Q2 2025 being SUVs, a notable rise from 24% in Q2 2023. This trend reflects a broader market preference for the versatility and utility offered by electric and hybrid SUVs.
Amazon's Strategic Expansion into the Used Vehicle Market
Inspired by the success of online automotive platforms like Carvana, Amazon has ambitious plans to expand its automotive market presence. As of early August, Amazon's Autos platform, previously limited to new Hyundai vehicles, now includes certified pre-owned and used vehicle listings. Initially launched in Los Angeles, Amazon plans to roll out this expanded service to additional U.S. cities in the coming months. This move reflects Amazon's intention to meet increasing dealer demand for broader online reach and provide consumers with a wider array of quality vehicle options, mirroring Carvana's successful online sales model.
The Enduring Appeal of Electric Vehicles Amidst Market Shifts
Despite fluctuating electric vehicle sales across the broader market in 2025, Carvana's robust growth in the EV and PHEV segments is pivotal to its financial recovery. The upcoming cessation of the $4,000 federal EV tax credit on September 30 might influence future sales, yet market forecasts remain optimistic. Industry experts predict that by 2033, approximately 90% of all car buyers will consider an electric vehicle, signaling a sustained demand and continued transformation of the automotive landscape. Carvana's current performance underscores the strength of the online model in capturing this evolving market interest.