Earnings overstatement
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Carvana shares fall 14% following short-seller accusations
CNBC· 2026-01-28 22:01
Shares of Carvana plummeted 14.2% Wednesday following short-seller accusations that the online used retailer overstated earnings with the help of businesses controlled by CEO Ernie Garcia III's family. Gotham City Research alleged Wednesday that the online used car retailer, which entered the S&P 500 last month, overstated its 2023-2024 earnings by more than $1 billion, and is "far more dependent on related parties" connected to the family than previously disclosed.To make its point, the short-seller publi ...