Carvana's Stock Plunges 15% Amid Allegations of Accounting Misconduct and Opaque Related-Party Transactions
ByAinvest
Friday, Jan 30, 2026 5:21 pm ET1min read
CVNA--
Carvana's stock plunged 15% after Gotham City Research alleged undisclosed related-party transactions inflated earnings by over $1 billion. Gotham claims DriveTime subsidies fuel 73% of Carvana's adjusted EBITDA with leverage at 20x to 40x. Subprime auto loan delinquencies reached 6.74% in December, with Carvana deriving 26% of gross profit from subprime loan sales. Investors are rethinking "hands off" investing and starting to make real money.
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