Carvana shares fell more than 14% over two days in August, triggered by a federal probe into billionaire investor Mark Walter, who indirectly owns 8% of Carvana's Class B stock through CVAN Holdings. The selloff came despite Carvana's record second quarter with $7.4 billion in revenue and $513 million in net income. Walter, CEO of Guggenheim Partners and controlling owner of the Los Angeles Dodgers and Lakers, faces an inquiry into whether he and his companies covered up financial relationships while transferring over $20 billion through insurance companies he controls. His firm TWG Global announced a $6.5 billion asset swap involving Delaware Life Insurance, fueling speculation he might sell his Carvana stake, though fears eased after reports his stake was pledged to Citigroup as collateral. Hedge fund ownership increased to 87 funds in the second quarter, while short interest remains at 9.70% of float.
Carvana CoFederal probe into investor Mark Walter, who indirectly owns 8% of Carvana's Class B stock, triggers selloff.
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