News about cars

Carvana (CVNA) sold 197,325 vehicles in the second quarter, up 38% from a year earlier, with record revenue of $7.38 billion and net income of $513 million. Higher interest rates are squeezing profit per car, as the spread the company earns on auto loans narrows when benchmark rates rise faster than customer APRs. Morgan Stanley kept its Overweight rating but cut its price target to $88 from $90 and its adjusted EBITDA estimate by 2% to $797 million. It models third-quarter Other GPU of $2,565 and calls the quarter a potential “clearing event” that could reset expectations before growth returns to focus. Carvana shares are down 30.30% year-to-date ahead of its October 28 report.

The 2026 Paris Auto Show was bigger than past editions despite absences from BMW, MG and most Japanese OEMs, with Chinese brands such as BYD, Geely and XPENG showing affordable, tech-packed EVs. European carmakers are responding with faster EV development, sharper pricing and retro-inspired designs, including a revival of the city car segment that Chinese OEMs have largely avoided because EU tariffs squeeze its thin margins. The author singles out the new Smart #2, a two-seater with a 36 kWh LFP battery, a 290 km WLTP range and a 308-liter trunk, priced from 20,000 euros, and estimates it could sell around 40,000 units a year. The Citroën 2 CV revival, priced at 15,000 euros, will only begin deliveries in 2028, which the author sees as a drawback.