Carvana reported a 55% surge in sales and profits in Q3, with revenue hitting $5.65 billion, up 55% from last year. Earnings per share were $1.03, missing estimates, but adjusted EBITDA reached a record $637 million, a 48% increase.

The online car retailer sold a record 155,941 vehicles in Q3, up 44% year over year. Despite the positive sales numbers, the stock slipped in after-hours trading.

Carvana founder and CEO Ernie Garcia highlighted the company’s industry-leading growth and profitability, reaching a $20 billion revenue run rate scale for the first time. The focus remains on the advantages of the vertically integrated model.

Carvana, known for its fully online vehicle buying and selling process, claims to be the most profitable car dealer with strong margins. However, critics and short sellers question the sustainability of the model.

Short seller Jim Chanos raised concerns about Carvana’s transparency and its loan service Bridgecrest, suggesting potential issues in the subprime auto space. Despite these criticisms, Carvana is projecting sales of over 150,000 units in Q4.

Carvana expects full-year adjusted EBITDA to range between $2 billion to $2.2 billion, slightly below estimates. The company continues to defend its vertically integrated business model and remains optimistic about future sales growth.

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