Carvana's Financial Woes Deepen: Allegations of $1B in Hidden Expenses and Related Party Transactions

Carvana's stock has fallen 29% from its all-time high after a Gotham City Research report accused the company of hiding over $1 billion in expenses through related-party transactions with DriveTime and Bridgecrest. A judge has ordered the production of previously withheld DriveTime documents in securities litigation, leading to a further 10% decline in shares. The allegations have sparked concerns about the company's financial reporting and whether this is where the wheels finally come off.