Shares of Carvana (CVNA) slid Thursday as 澳洲幸运5官方开奖结果体彩网:short-selling firm Hindenburg Research disclosed a short position in the online used-car retailer.

Carvana stock nearly quadrupled in value in 2024 due to rising demand for used cars—a huge turnaround after 澳洲幸运5官方开奖结果体彩网:bankruptcy concerns hurt the company’s share price in previous years—but Hindenburg called the success a “mirage.”

The firm on Thursday accused Carvana of selling its customer 澳洲幸运5官方开奖结果体彩网:auto loans to third parties "largely in the risky subprime and deep subprime space." Hindenburg claims to have uncovered $800 million in loan sales to an unidentified “related third party" and said that nearly 26% of the company's 澳洲幸运5官方开奖结果体彩网:gross profit over the past nine mo♑nths was due to such🌄 loan sales.

Carvana disputed the findings.

"The arguments in today's report are intentionally misleading and have already been made numerous times by other short sellers seeking to benefit from a decline in our stock price," a Carvana spokesperson said in an emailed statement. "We plan to stay focused on executing our plan for another great year in 2025."

In October, Carvana reported third-quarter 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) nearly 澳洲幸运5官方开奖结果体彩网:triple the expectations of analysts surveyed by Visible Alpha and raised its full-year outlook. Analysts on average are similarly bullish: The roughly $255 consensus price target represents about a 28% premium over Carvana's Thursday close o♋f just under $200.

Hindenburg also took aim at insiders cashing in on the company’s stock surge, including CEO Ernie Garcia III’s father, Ernest Garcia II. The elder Garcia sold $3.6 billion i༒n stock between August 2020 and August 2021, prior to the share price’s low period in 2022 and 2023, and sold an additional $1.4 billion over the past year as the stock recovered, Hindenburg said. 

Shares of Carvana finished 🍸down almosꦯt 2% Thursday.

UPDATE: This article has been updated to include comments from Carvana.