Hindenburg Research said Thursday (Jan. 2) that it has taken a short position in shares of online car dealer Carvana, alleging a “father-son accounting grift” at the firm.In a report posted Thursday, Hindenburg said that Carvana’s turnaround is a “mirage,” that the company engaged in “sham” deals with a private car dealership run by the father of Carvana’s CEO, and that Carvana faces other challenges as well.“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 — all while insiders cash out billions in stock,” Hindenburg said in its report.Reached by PYMNTS, a Carvana spokesperson said in an emailed statement that Hindenburg’s report is “intentionally misleading and inaccurate.”“In the 7 years since our IPO, Carvana has been one of the most heavily researched public companies,” the statement said. “The arguments in today’s report are intentionally misleading and inaccurate and have already been made numerous times by other short sellers seeking to benefit from a decline in our stock price. We plan to stay focused on executing our plan for another great year in 2025.”The Hindenburg report said that Carvana’s stock plunged 99% and the company faced bankruptcy concerns in the year after Ernest Garcia II, the father of Carvana CEO Ernest Garcia III, stopped selling $3.6 billion in stock in August 2021.It added that Ernest Garcia II has sold another $1.4 billion in Carvana stock since the company’s shares increased by about 42 times.“As insiders unload stock, the company’s solvency risks remain,” the Hindenburg report said. “Almost 26% of Carvana’s gross profit consisted of sales of customer auto loans to third parties, largely in the risky subprime and deep subprime space.”Carvana reported Oct. 30 that in the third quarter, its online car marketplace saw a 34% year-over-year increase in retail units sold and a 32% year-over-year increase in total revenue.“The machine we have built is fundamentally differentiated and the result is an opportunity with few precedents,” Carvana said in its third-quarter letter to shareholders

It seems as if consumers can buy just about anything from Amazon. Now, you can add cars to that list. Can Amazon Autos become a go-to destination for car buyers, providing Amazon with a competitive edge in an area where Walmart has yet to establish a strong presence?. While Walmart does sell and even buy cars through its Carsaver partnership, the company still relies on third parties to handle the bulk of the transaction process. This leaves an opportunity for Amazon to take a more direct approach, leveraging its vast ecosystem and tech-driven conveniences to elevate the car-buying experience

Amazon Autos allows customers to complete an entire car-buying transaction on Amazon’s website and then pick up the vehicle from a local dealership. (Amazon Photo)Amazon is entering the automotive market with the public beta launch Tuesday of Amazon Autos, a service that allows customers in 48 U.S. cities to shop for, finance, and pick up a new Hyundai vehicle with the familiarity of shopping on the e-commerce giant’s website.Just over a year since announcing the strategic partnership with Hyundai, the official launch is the realization of Amazon’s desire to try to simplify one of the more complex retail transactions.Amazon plans to add to the initial selection of Hyundai dealerships and will roll out additional manufacturers, brands, cities, and functionality next year.“We’re partnering with dealers and brands to redesign car shopping — making it more transparent, convenient, and customer-friendly,” Fan Jin, global head of Amazon Autos, said in a statment. “With Amazon Autos, we’re bringing the simplicity and ease customers expect from Amazon to car shopping, one of their largest purchases, while offering dealers a new channel to connect with a broad audience.” Amazon Autos allows customers to:. Browse and search for available vehicles at their local dealer by make, model, trim, color, and features.Get an instant valuation and trade in their existing vehicle towards the price of the new car.See transparent, upfront pricing.Secure financing or pay in full.Complete the checkout process online. Schedule a pick-up time at a dealership. The Amazon Autos homepage featuring the ability to shop for Hyundai vehicles