If you're still trying to wrap your head around how Carvana (yes, the vending machine for used cars) went from bankruptcy rumors to posting one of the strongest quarters in the market… you're not alone.

Last week, the company reported a 46% year-over-year jump in units sold, moving nearly 134,000 used cars in Q1. Revenue hit $4.23 billion, up 38% from last year and easily clearing Wall Street’s $3.98B forecast. And earnings per share was $1.51, more than double the expected 67 cents. This was a full-on statement to the rest of the world. Net income came in at $373 million, helped by a $158 million tied to Carvana’s investment in insurance partner Root. They also notched record operating income and record adjusted EBITDA at $488 million.

And about those 25% tariffs that have car companies freaking out… yeah, Carvana isn’t even worried. CEO Ernie Garcia III told investors the company had only seen some “little gyrations” in demand, and that if anything, higher new car prices might help used car sales. That “substitution effect” could be a long-term help if new car sticker shock pushes more shoppers toward used inventory.

So… great earnings, positive macro setup, optimistic long-term guidance… But now filings are showing their CEO unloaded $192 million worth of stock. On the same day investors were celebrating the comeback, Garcia filed to sell 630,000 shares… his biggest single-day sale since Carvana went public. To put that in context, his previous record was just $2.1 million. 

And it wasn’t just Junior. His father, Ernie Garcia II, quietly made some moves of his own… selling call options on 4 million shares to Citigroup. These give Citi the right to buy the shares at $400 (31% above the current price) anytime before April 2026. Which means the elder Garcia profits most if the stock stays below that level. Not exactly a vote of confidence.

Oh, and he also pledged 9 million more shares as collateral, just in case you were wondering how committed they are to riding this thing all the way up. So what’s going on? Sure, insiders sell stock all the time for boring reasons… estate planning, diversification, taxes. But when the CEO sells nearly $200 million right after posting blowout earnings (and the largest shareholder is hedging his upside) it’s fair to ask what they see that we don’t.

Carvana says it's on track to sell 3 million cars per year with 13.5% EBITDA margins long-term. That’s the vision. But if the people behind the vision are already cashing out this aggressively… Maybe the real money’s already been made.

Stock.News does not have positions in companies mentioned.