Cause of Caravana stock's 30% increase

Carvana was founded ten years ago with the intention of disrupting the used car market by providing both online car buying and trade-ins, as well as distinctive car vending machines.

The tall, glass automobile vending machine company that sells old cars online saw a rise of more than 30% in early trade on Wednesday.

According to a press release, the Phoenix-based corporation will pay down more than $1.2 billion in debt.

“The strong performance of our business in 2023 presented an opportunity for an impactful and win-win transaction for Carvana and its senior unsecured noteholders,” said Mark Jenkins, Carvana’s chief financial officer, in a statement.