Top 10 things to know about Carvana, the latest company under Hindenberg Research’s gaze | Company Business News

United States-based short seller Hindenburg Research has alleged that online car dealer Carvana Company has $800 million in loan sales under a suspected undisclosed related party transaction, as per a report released on January 2. It has taken a short position on the business and stocks tanked by close to 5 per cent after Hindenberg’s report was published.

“Our research uncovered $800 million in loan sales to a suspected undisclosed related party, along with details on how accounting manipulation and lax underwriting have fueled temporary reported income growth,” alleged Hindenburg Research in its report titled — “Carvana: A Father-Son Accounting Grift For The Ages.”

Shares of the $44 billion company dropped nearly 5 per cent after the short seller released the report. The company’s main business is to provide retail customers with an online platform to buy and sell used cars.