Carvana CEO’s Father Sees $1.4 Billion Windfall From Stock Sale
Live MintErnie Garcia II, the father of Carvana Co. Chief Executive Officer Ernest Garcia III, has cashed in $1.4 billion of the company’s stock since April — a stake that’s now worth $2.5 billion after a blistering rally in the online auto retailer’s shares. The elder Garcia has unloaded almost 10 million shares of Carvana since April 11, selling all of his Class A stock and converting some of his Class B voting shares and liquidating them. Offloading Carvana shares represents a way to diversify the Arizona billionaire’s holdings and cash in on the used car seller’s rally after he made substantial investments in the company in recent years. Such a rapid selloff by an insider might leave shareholders wondering whether Garcia II, who owns a private auto retailer called DriveTime that has close business relationships with Carvana, suspects the shares have peaked again.
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