Online used-car seller Carvana Co. was a pandemic winner, wowing Wall Street with relentless sales growth. Following the path of tech disrupters like Netflix Inc. and Uber Technologies Inc., it borrowed billions from investors willing to prize growth over profitability.
Now Carvana is facing tests. The tailwinds that boosted growth—rising used-car prices, low interest rates and an early-mover advantage in online car sales—are ebbing. And the cash-burning company is years away from profitability.
