Hindenburg shorts Carvana, calls turnaround a ‘mirage’ [Video]

Noted short seller Hindenburg Research disclosed a bet against Carvana on Thursday, claiming the online used-car retailer’s recent turnaround is a “mirage” that is being propped up by unstable loans and accounting manipulation.

The report, called “Carvana: A Father-Son Accounting Grift For The Ages,” centers on Carvana’s practice of loan sales as well as the business relationship between CEO Ernie Garcia III and his father, Ernest Garcia II, who is Carvana’s largest shareholder.

Shares of Carvana closed Thursday at $199.56, down 1.9% – marking its first close under $200 per share since October. The stock increased nearly 300% in 2023, as the company improved results and reduced costs as part of a turnaround plan led by Ernie Garcia III.

Carvana in a statement called Hindenburg’s report “intentionally misleading and inaccurate” without going into specific details.

“In the 7 years since our IPO, Carvana has been one of the most heavily researched public companies. The arguments in today’s report are intentionally misleading and inaccurate and have …