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Hindenburg Shorts Carvana, Alleging ‘Grift for the Ages’
- Firm takes short position, claims financial manipulation
- Report says firm owned by CEO’s father helped boost results
A worker unloads a vehicle from a flatbed truck at a Carvana vending machine location in Uniondale, New York.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
Carvana Co. was accused by prominent short-seller Hindenburg Research of impropriety in a report alleging that the auto retailer’s subprime loan portfolio carries substantial risk and its growth is unsustainable.
Hindenburg took a short position on Carvana’s stock after conducting research that included interviewing former employees. The report, titled: “Carvana: A Father-Son Accounting Grift for the Ages,” makes several claims, including that Carvana has lax underwriting standards and uses a company owned by the father of Chief Executive Officer Ernest Garcia III to boost results.