How is CVNA not at 0?
- Sold $800M in loans to a suspected related party linked to Cerberus Capital, falsely labeled as independent.
- Inflated revenue through deals with related-party DriveTime, including overpriced inventory sales and shifted warranty costs.
- Approved nearly all loan applicants, creating a risky subprime portfolio with 44% of loans underwater.
- Masked delinquencies by issuing frequent loan extensions, avoiding higher default reporting.
- Packaged toxic subprime loans into asset-backed securities with delinquency rates far above industry averages.
- Insiders sold billions in stock during inflated valuations, including $3.6B by the CEO’s father before a 99% stock crash.
- SEC investigation and class-action lawsuit allege fraudulent related-party transactions and accounting manipulation.
- not to mention the insane almost 20K PE ratio, (yes 20,000)
CVNA is being held together with glue and duct tape. They’re comitting fraud with their accounting, trying to offloading risky defaulting loans, and cutting shady deals with related parties. Insiders are cashing out big while the company piles up debt and hides problems like a sinking ship.