Oct. 5 at 10:00 PM
$ROOT
So here's what's probably coming Rootie Tooties. The warrants are now officially worthless so CVNA will have a huge writedown on previously booked warrant value that is going to tank their Q3. They now have ZERO incentive to keep ROOT on as their insurance vendor, not "partner". The manufactures that sell inventory to my company are "vendors" not my partner.
$CVNA will now be shopping for another insurer to "embed" and at the same time give a big up-front signing commission to offset the warrant losses. Wouldn't be surprised if its
$LMND. That will crash Root's new policies by about a third and will also tank renewals as the CVNA policy holders will jump to the new provider when due for renewal.
Expect this little bug of an insurance company to slide to about 20 by Christmas.
