CarMax, Carvana Shares Tumble After Amazon Says It Will Sell Cars

By
Naomi Buchanan
Naomi Buchanan
Full Bio
Naomi Buchanan is a reporter at Investopedia breaking down news stories that impact investors.
Learn about our editorial policies
Published November 16, 2023
Amazon Vice President of Worldwide Corporate Business Development Marty Mallick and Hyundai Global President and Chief Operating Officer Jose Munoz announce partnership.
Amazon Vice President of Worldwide Corporate Business Development Marty Mallick and Hyundai Global President and Chief Operating Officer Jose Munoz.

Robyn Beck / AFP / Getty Images

Key Takeaways

  • Shares of online auto marketplaces including Cars.com, CarMax, Carvana, and competitors tumbled on Thursday after Amazon announced the online retail giant would start selling cars.
  • The "new digital shopping experience" where Amazon customers will be able to buy cars online is set to roll out in 2024.
  • Hyundai will be the first brand available on the site as part of a partnership between the two brands.

Shares of online car sellers tumbled on Thursday after Amazon (AMZN) announced it will begin selling vehicles to U.S. customers starting in 2024.

Online vehicle marketplaces Cars.com (CARS), CarMax (KMX), Carvana (CVNA), and others took a hit after the e-commerce giant announced it was moving into the industry. Shares of Carmax dropped more than 5.5% while Cars.com fell nearly 3.3%. In the same period, Asbury Automotive Group (ABG) shares declined more than 7.9%, as Sonic Automotive (SAH) fell more than 7.6% and CarGurus (CARG) dipped more than 2.6%.

Amazon reported that Hyundai will be the first brand available for customers to purchase starting in 2024. Customers will be able to buy a new vehicle on their platform and then pick it up or have it delivered by their local dealership at their convenience, Amazon said.

Amazon shares were down around 0.25% on Thursday.

Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Amazon. "Amazon and Hyundai launch a broad, strategic partnership—including vehicle sales on Amazon.com in 2024."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.