By Dhirendra Tripathi
Investing.com – Carvana stock (NYSE:CVNA) fell 3% Wednesday after being barred from selling cars in North Carolina’s Raleigh area until January.
According to a report in The Wall Street Journal, a state investigation determined that it failed to deliver titles to the motor vehicle department and sold cars without state inspections.
The state motor vehicles department has revoked the used car dealer’s license for its Wake County location. According to the WSJ report, the company has also agreed to pay a civil penalty of $500 and an administrative hearing fee of $200, according to court documents.
The penalty was part of an agreement Carvana reached with state officials.
Carvana’s business of selling used cars has boomed in the pandemic as chip shortage has held back production of new cars and thus forced buyers to look at purchases of second-hand vehicles.
The June-quarter net profit was the company’s first ever. June-quarter revenue of $3.33 billion was also the first time the company crossed the $3-billion mark, almost trebling from $1.11 billion in the same period last year.
Net income was $45 million, up from a loss of $106 million in the prior-year period. Retail sales also touched a record and almost doubled to 107,815 units from 55,098 units in the June quarter of 2020.