DeLorean Sports Cars went out of business because John DeLorean would not listen to any of his Financial Officers. DeLorean went through several of them and DeLorean fired them, in turn, when they gave him the same advice:
By the accounts at the time, DeLorean was adequately financed and had sufficient funds lined up to make about 15,000 units.
The Financial Officers advised DeLorean to sell-to-customer-preorder. That is, wait for a customer to make a deposit and then build the vehicle. The general consensus was that DeLorean would sell 5000 vehicles the first year, maybe a few more the second year...and if every customer's check bounced they would run out of cash near the end of the third year.
DeLorean's ego killed the company. He ran the factory and made fifteen thousand cars and then they sat in shipping and on dealer lots.
It quickly became apparent that the brushed stainless steel exterior looked dingy after sitting in the rain. Stainless steel is most corrosion resistant when polished and the a brushed finish caught and held soot and allowed algae to get a toe-hold.
Constricting supply would have resulted in customers paying a premium and dealers making more per unit. They would have worked to sell DeLoreans. Having several DeLoreans parked on the dealership lot caused the model to lose some of its cachet and turned it into a me-too sports car.
Even worse, many of those vehicles sat on the lot long enough became "past model" and had to be very deeply discounted.
The rest is history.
History rhymes and echoes
One of our local factories makes the cab-over, medium duty truck similar to those used by Carvana.
Due to part shortages, they have hundreds of these trucks parked at various parking lots. The MSRP for these vehicles runs in the $140k-$170k range.
The two General Motors plants in Lansing have similar problems.
That is a boatload of operating capital tied up.