LOTZ - Brutal Business Update Sends CarLotz Stock Spiraling 22% Lower
Shares of CarLotz, Inc . (NASDAQ: LOTZ) , a used vehicle consignment and Retail Remarketing business, spiraled as much as 22% lower Wednesday morning before recovering slightly after the company announced a business update.
Management informed investors that one of the company's sourcing partners has paused its consignments to CarLotz due to wholesale market conditions. In a press release CEO Michael Bor said:
The surge in wholesale vehicle prices and the continuing new car chip shortage continues to place limitations on inventory sourcing throughout the industry. This fact, combined with the pause of our profit-sharing account, has created challenges in obtaining our expected inventory levels.
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Brutal Business Update Sends CarLotz Stock Spiraling 22% Lower