Amazon.com (AmznThe Japanese automaker announced Thursday that it will begin online car sales for the first time in 2024. Carvana (CVNA) Stocks fell on the news but rebounded on Friday.
X
The e-commerce giant said its digital car sales will start with Hyundai vehicles sold by dealerships.
“This new shopping experience will create another way for merchants to build awareness of their selections and provide convenience to their customers,” Amazon said in a blog post.
As part of the deal, South Korea’s Hyundai will integrate Amazon’s Alexa voice assistant into its cars starting in 2025. It will also use Amazon Web Services (AWS) for cloud services.
Amazon shares
Amazon shares fell 0.3% to 142.83 on Thursday. They rose 1.3% on the stock market today.
A MarketSmith chart shows that Amazon stock now sits about 1% below the 145.86 buy point that was briefly cleared on Tuesday.
Carvana Stock, CarMax
Among the stocks of the auto retailer, Carvana, Carmax (CMX), Lithia Motors (boy) And Automatic nation (that) Both fell 5%-6% in Thursday trading. Shares of Carvana and CarMax rose on Friday. Lithia and AutoNation rose more than 1% each.
The coronavirus pandemic has accelerated the shift to online car sales.
Tesla (TSLA) drove online car sales through its website. Carvana led the move into online used car sales. But many car dealers have strongly opposed Tesla selling cars directly to consumers, bypassing traditional dealer networks.
Amazon’s move into the automotive space has long been rumored. In 2017, reports of its entry sparked a sharp sell-off in auto parts stocks.
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