Core Viewpoint - Jim Chanos, a prominent short seller, has taken a position against Carvana (CVNA), citing concerns over the subprime auto lending market despite the company's significant stock performance over the past three years [1][2]. Company Performance - Carvana's stock has increased by 2,155% over the last three years, but it experienced an 11% drop recently due to Chanos' comments [1]. - In Q3, Carvana sold approximately 159,000 retail units, marking a 46% year-over-year increase and exceeding estimates by 6% [3]. - Sales in September rose by 54%, the fastest growth since late 2024, with Carvana achieving over 40% growth in car sales for five consecutive quarters [3]. Financial Metrics - The average selling price on Carvana's platform increased by 5% to $26,300, surpassing industry trends, while website traffic grew by 22% last month [4]. - Carvana reported record-breaking second-quarter results with retail units sold reaching 143,280, a 41% year-over-year increase, and revenue of $4.84 billion [5]. - The company achieved new records in adjusted EBITDA margin, GAAP operating income, and net income dollars [5]. Market Position - CEO Ernie Garcia stated that Carvana has become the fastest-growing and most profitable automotive retailer, capturing approximately 1.5% market share in the U.S. used car market [6]. - CFO Mark Jenkins highlighted the efficiency advantages of Carvana's vertically integrated platform, which supports annual sales exceeding one million units, positioning the company for substantial overhead leverage as growth continues [7].