American used car specialist Carvana (Carvana Co. (NYSE:CVNA)) has hit back at an incendiary report by Hindenburg Research, the short-seller, calling it intentionally misleading and inaccurate.
The research pulls few punches on significant risks in its subprime loan portfolio and unsustainable growth.
Even its title, "Carvana: A Father-Son Accounting Grift for the Ages", appears to go out of its way to shock.
Quoted by Bloomberg, a Carvana spokeswoman retorted: “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."
The shares fell 1.9%, suggesting the market was largely ignoring the Hindenburg missive.