Polarizing activist short-seller Hindenburg Research—known for its bombshell reports alleging corporate fraud and other malfeasance by companies including Nikola Corp. (NASDAQ: NKLA) and India's Adani Group—published on January 2, 2025, an article about its latest target: Carvana Co. (NYSE: CVNA).
In the report, Hindenburg alleges that the $44-billion online car dealer's stock spike of 284% throughout 2024, which some investors have hailed as a major turnaround following bankruptcy scares in 2022 and 2023, is a "mirage." At the core of Hindenburg's report is an allegation that Carvana engaged in accounting manipulation and lax loan underwriting to give the appearance of income growth in recent quarters. As is its custom, Hindenburg also announced at the time of the report's release that it had entered a short position of undisclosed size in CVNA shares.
