Carvana stock split: Date, timeline, and what the historic proposal means for investors in 2026

Shareholders will get to decide next month if the 14-year-old used-car company should proceed with its first-ever stock split. Here’s what to know.

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The used-car e-commerce platform Carvana Co. (NYSE: CVNA) is planning to do something it has never done before: split its stock.

If completed, the move will significantly reduce the per-share price of CVNA stock, without affecting the company’s total value. But first, it needs to be approved by shareholders.

Here’s what you need to know about Carvana’s proposed stock split.

What is a stock split?

A stock split is a mechanism by which a company can increase or decrease the number of its shares by dividing those shares or combining them.

There are two types of stock splits: a forward split and a reverse split. A forward split is the most common, and the type that Carvana is proposing.

In a forward split, an individual share is divided into additional shares, reducing the value of each share. A forward split is usually just referred to as a “stock split.”

On the other side of the coin, you have a reverse split. These are less common than forward splits. In a reverse split, multiple existing shares of a stock are combined into a single share, making each new share more valuable because there are fewer of them.

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