Carvana Under Fraud Inquiry by Hindenburg Amid Executive Stock Dumping

Carvana Co. (CVNA) is under scrutiny as multiple sources, including Hindenburg Research, report a surge in inquiries regarding potential accounting fraud. This comes amid a broader context where similar online used car retailers have either gone bankrupt, such as Shift Technologies Inc. ($SFT), or shifted business models, such as Vroom Inc. ($VRM), which now focuses only on financing, and Cazoo ($CZOO), which has become a listing website. Despite these industry challenges, Carvana has reportedly been able to expand its margins. Additionally, allegations of stock dumping by executives and one-time accounting adjustments have raised concerns about the company's financial practices.