Back to Earth. After having thrilled the Stock Exchange and raised billions of euros, the newcomers on the used car market in Europe are now arousing the mistrust of investors. Cazoo, Auto1 and others are still aiming to revolutionize industry practices by selling cars reconditioned by them online, but the game looks more complicated than expected.
Their tumble on the stock market certainly does not have the magnitude of that suffered by Carvana, the American big brother who has seen its stock market valuation divided by ten since August 2021, but all the same. The share price of Britain’s Cazoo is down 76% since the start of the year, and that of Germany’s Auto1, known under the AutoHero brand, by 53%. As for the French Aramis, a pioneer for twenty years and introduced last June on Euronext, its valuation has since been divided by 4.