Carvana has acquired Park Cities Chrysler Dodge Jeep Ram of Dallas months after purchasing its first franchised dealership, Casa Grande (Ariz.) CJDR, increasing the online used vehicle retailer’s access to trade-in units.

The bold strategy could pay off, writes investment advisor Rich Duprey for 24/7 Wall St., noting all dealers are on the hunt for quality inventory; Cox Automotive reports used car sales increased by 8.1% in August on reduced supplies.

“But managing dual sales models risks operational chaos, regulatory snags from franchisors and diluted focus on what made Carvana a disruptor,” Duprey warns. “Investors should eye its execution closely as one misstep could stall the stock’s historic rebound from near-bankruptcy lows in 2022.”

Read more at 24/7 Wall St.