NEWS
Carvana’s Accounting Explodes Harder Than Tesla’s Cybertruck 🛻 

The first trading day of 2025 got off to a rough start, with the NASDAQ and S&P extending their losing streaks to five consecutive sessions and the Dow falling for the fourth straight day. Meanwhile, the Sixth Circuit struck down the FCC’s Net Neutrality rules. On a brighter note, oil prices broke out, reaching $73.31—its highest level since mid-October 2024. 👀

Today’s issue highlights a double whammy: Tesla faces a rough day, and Carvana becomes the latest target of Hindenburg Research. 📰

Here’s the S&P 500 heat map. 5 of 11 sectors closed green, with energy (+1.41%) leading and consumer discretionary (-1.08%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $DUO, $TPL, $COHR, $HOOD, $FSLR, 📉 $EDU, $TSLA, $RKT, $GM, and $YUMC

*If you’re a business and want to access this data via our API, email us.

COMPANY NEWS
Fireworks And Fumbles. Tesla’s Drama 🎆 

We’ve got a double dose of Tesla drama. 🚗💣 

First, the EV giant logged its first annual sales drop in over a decade. Then, a rented Cybertruck packed with fireworks exploded in the valet lane of Trump’s Las Vegas hotel.

Sales sank 1.1% in 2024 from the previous year. It’s the first time since 2011 that Tesla’s global vehicle count ended lower. Blame slowing demand, aging models, and discount deals that trimmed margins. Guess the days of unlimited hype and minimal competition are over. 🤷

Meanwhile, a Cybertruck loaded with fireworks erupted in flames outside Trump International Hotel, injuring seven people and killing the individual inside. Authorities are treating the incident as a terrorist attack. However, the attacker may have overlooked the fact that the Tesla truck is essentially a tank—it doesn’t blow up very easily.

Despite the setback, analysts remain optimistic about Tesla’s ambitious vision for AI and autonomous technology. They argue that a temporary slump in sales is insignificant when you're focused on building the future. 🤖

Tesla’s stock closed the day down 6% today, marking its fifth consecutive session of declines.

COMPANY NEWS
Carvana’s Mystery Loan Buyer? 🎂 

When Hindenburg Research sniffs out corporate nonsense, they don’t just ring a bell—they light a bonfire. This time, their target is Carvana, and they’ve gone deep. 

Why Hindenburg’s Suss 🤔 

• The “Comeback”
  In 2024, Carvana’s stock soared 284%, supposedly leaving bankruptcy fears behind. Hindenburg calls it an illusion.

• Father-Son Accounting Act
  CEO Ernie Garcia III’s father, Ernest Garcia II (a convicted felon), sold billions in stock before Carvana’s prior collapse. Now, he’s offloaded another $1.4 billion

• Lax Underwriting & Subprime Loans
  Former insiders claim Carvana approved nearly everyone, leaving borrowers drowning in debt while bundling subprime loans. Hindenburg compares it to the early-2000s mortgage crisis.

• Mystery Financing
  With Ally Financial stepping back, a new “unrelated” buyer conveniently emerges—likely Cerberus, led by Carvana board member Dan Quayle.

Shady Related-Party Deals 🥷 

• DriveTime Connection
  Need to offload warranties or inventory at inflated prices? Sell to Dad’s private dealership. Problem solved.

• Cooking The Books?
  Hindenburg alleges “aggressive” accounting, mid-tier auditing by Grant Thornton, and potential undisclosed SEC investigations.

Bottom Line 🧾 

• Hindenburg believes Carvana’s “turnaround” is driven by subprime lending, insider profiteering, and questionable accounting.

• They’re short on Carvana, predicting shareholders will be left holding the bag while the Garcias walk away billions richer.

Price Reaction? Meh. 🤷 

Our recent poll shows 62% of Stocktwits users expect a sharp decline below $150 in 2025 after this report.

From a price action perspective, that sharp drop wasn’t going to happen today - $CVNA is down just under 2% at the close.

(All claims from Hindenburg Research—always do your own due diligence.)