Renowned short seller Jim Chanos revealed a new bet against Carvana (CVNA), causing its stock to drop 11%. Chanos cited concerns about mounting stress in the subprime auto lending market, highlighting rising delinquencies and defaults. Despite this, Carvana sold 159,000 retail units in Q3, up 46% YoY, with sales in September increasing by 54%. The online retailer’s average selling prices rose to $26,300, surpassing industry trends. Analysts project Carvana’s sales to grow from $13.67 billion in 2024 to $46 billion in 2029, potentially doubling CVNA stock within four years. Currently, 12 analysts recommend a “Strong Buy” on CVNA stock, with an average price target of $429.

Carvana delivered record-breaking results in Q2, selling 143,280 retail units, increasing revenue to $4.84 billion, and achieving new profitability records. CEO Ernie Garcia emphasized the company’s rapid growth and profitability, capturing 1.5% market share in the U.S. used car market. CFO Mark Jenkins highlighted Carvana’s vertically integrated platform efficiency and outlined three key growth drivers: customer experience improvements, increasing awareness and trust, and expanding inventory selection through ADESA integration. The company aims to sell three million cars annually within five to ten years at 13.5% adjusted EBITDA margins.

Read more at Yahoo Finance: Legendary Investor Jim Chanos Is Betting Against Red-Hot Carvana Stock. Should You?