Shares of Carvana had been briefly halted Monday morning attributable to volatility, down by as a lot as 24% at one level to beneath $7 per share — its lowest level on file.

Quantity spiked on the beaten-down used automotive vendor identify Monday. In simply the primary 22 minutes of buying and selling, greater than 9.2 million Carvana shares had modified fingers. That is greater than 65% of the inventory’s 30-day common quantity of 14.14 million.

Shares of Carvana have plummeted by 97% this yr after reaching an all-time intraday excessive of $376.83 per share on Aug. 10, 2021. The inventory on Monday hit an all-time low of $6.68 per share, although it barely recovered within the first hour of buying and selling to about $7.50 a share, off roughly 14%.

Monday’s decline comes after Carvana inventory posted its worst day ever Friday after the corporate missed Wall Avenue’s top- and bottom-line expectations for the third quarter because the outlook for used automobiles falls from file demand, pricing and earnings throughout the coronavirus pandemic.

Cox Automotive’s Manheim Used Automobile Worth Index, which tracks costs of used autos bought at its U.S. wholesale auctions, has fallen by 15.4% this yr by October after peaking in January, together with a 2.2% decline from September to October.

Retail costs historically observe adjustments in wholesale. That is excellent news for potential automotive patrons, nonetheless not nice for firms akin to Carvana that bought the autos at file highs and at the moment are attempting to promote them at a revenue.

Morgan Stanley on Friday pulled its score and worth goal for the inventory. Analyst Adam Jonas cited deterioration within the used automotive market and a unstable funding setting for the change.

Pricing and earnings of used autos have been considerably elevated as shoppers who could not discover or afford to buy a brand new automobile opted for a pre-owned automotive or truck. Inventories of latest autos have been considerably depleted throughout the pandemic largely attributable to provide chain issues, together with an ongoing international scarcity of semiconductor chips.

However rising rates of interest, inflation and recessionary fears have led to much less willingness by shoppers to pay the file costs, resulting in declines for Carvana and different used automobile firms akin to CarMax.

Carvana co-founder and CEO Ernie Garcia on the corporate’s quarterly name Thursday described the following yr as “a tough one” for Carvana, citing a normalization of the used automobile trade from its inflated ranges and growing rates of interest, amongst different components.

He described the tip of the third quarter because the “most unaffordable level ever” for purchasers who finance a automobile buy.

— CNBC’s Fred Imbert contributed to this report.