Lithia & Driveway Inc. (NYSE: LAD) saw its shares close at $321.76, down 2.97% on October 27, 2025, following the announcement of significant strategic moves designed to bolster its expansion in California.
The company has acquired three Hyundai dealerships located in Orange County—Anaheim Hyundai, Huntington Beach Hyundai, and Garden Grove Hyundai. This move is projected to add an estimated $440 million in annualized revenue, significantly boosting LAD’s portfolio in a competitive market.
According to Bryan DeBoer, President and CEO, these acquisitions enhance the company’s brand diversity and customer reach. He stated that, “These highly profitable acquisitions increase our brand diversity and bring thousands of new customers into our ecosystem.” The financing for these acquisitions was made possible through the company’s on-balance sheet capacity, achieved at a cost of less than 10% of revenues.
With this latest investment, Lithia & Driveway has now acquired $1.16 billion in expected annualized revenues through various U.S. acquisitions since the beginning of the year, highlighting a focused strategy to advance growth while adding value for shareholders.
Strengthening EV Sales
Part of LAD’s expansion effort also aligns with its mission to enhance its electric vehicle (EV) sales. In the third quarter, battery electric vehicles represented 10% of its new retail sales, up from 8% in earlier quarters, thanks in part to favorable market conditions following the expiration of various EV tax credits.
The company’s GreenCars platform continues to promote EV adoption by offering comprehensive education and incorporating sustainability into the buying process. This initiative underlines LAD’s commitment to modernizing transportation solutions across its retail environment.
Recognition in Canada
In addition to its expansion endeavors, eight Canadian LAD dealerships were highlighted in the 2025 Automotive News Best Dealerships To Work For list, representing 20% of all dealerships recognized across Canada.
DeBoer emphasized the importance of this achievement, stating, “This achievement reflects the strength of our teams and the culture we’ve built. Our employees’ commitment to innovation and customer care sets the standard for our organization.” Such recognition reinforces the company’s reputation for workplace excellence and employee satisfaction.
Mixed Performance Metrics
Despite these promising developments, LAD’s stock performance remains a concern. The company is down 9.49% year-to-date and has experienced a 2.74% dip over the past year. However, it boasts a commendable 59.13% return over the past three years, indicating long-term stability and growth potential.
With an expanding retail network, a forward-looking EV strategy, and commendations for workplace practices, Lithia & Driveway is positioning itself as a formidable player in the automotive industry, particularly robust in its sustainability initiatives.
