Carvana Shares Rebound as Analysts Defend Firm From Short Seller

A worker loads vehicles onto a transporter at a Carvana vending machine location in Uniondale, New York.Photographer: Angus Mordant/Bloomberg

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January 29, 2026 at 4:53 PM UTC

Carvana Co. shares bounced back from a steep selloff after Wall Street analysts rushed to defend the online used-car dealer’s business following a report from short seller Gotham City Research that accused the company of overstating earnings.

The stock rose as much as 8.5% Thursday after falling the most in nine months a day earlier. Gotham City Research’s report on Wednesday alleged improper ties between Carvana and DriveTime, a privately held used-car seller and subprime lender owned and controlled by the father of Carvana’s CEO.