Kerrisdale says short ‘insolvent’ Carvana, calls stock ‘worthless’

Kerrisdale Capital tweeted: “We are short $CVNA. Report avail at kerr.co/cvna. Carvana is insolvent, its equity is worthless. Nothing more than a poorly run auto retailer, the company will never generate sustainable positive cash flow until its debt is equitized (…) $CVNA has never produced profitable growth. Even during the pandemic when demand soared, interest rates were low and used car prices were mooning, $CVNA couldn’t generate consistent profits – now none of those conditions exist (…) . With $6b of high cost bonds, negligible “adj” EBITDA, significant capex, shrinking revenue (down -25% y/y) and dwindling liquidity, $CVNA is destined for a debt restructuring”