Why Carvana is dropping 15+% tomorrow
Last quarter, Carvana reported insane numbers, including a GPU of $6,432, which was a 50% increase year over year. We have since learned that Carvana bought a large number of Teslas from Hertz when they went bankrupt at steep discounts. This egregiously elevated their numbers to a severely unsustainable level.
BEAR THESIS:
- The co-founder and CEO sold 1,590,000 shares in July alone. This does not include the millions of shares he sold in 2024.
- Carvana has $3,000,000,000 (yes, 3 billion) in debt that it pays 10.25% to service every year.
I can't say I didn't tell you so.
1 last quality bit of information: the CEO and co-founder is a con man and a criminal. He pleaded guilty to felony bank fraud in 1990. I 100% guarantee he is cooking this company's books.
Position: 1/17/2025 $80 puts
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