Carvana Raises ‘Lots of Red Flags’ Amid Auto Loan Woes, Chanos Says

Carvana Co. raises “lots of red flags,” especially after the recent implosion of auto lender Tricolor Holdings, says famed short-seller Jim Chanos, who has singled out the online car retailer over the past several years.

“Given the news in the subprime auto space of defaults, bankruptcies, rising delinquencies, the fact that Carvana seems to be sailing through it with nary a scratch stretches credulity,” Chanos said during a Bloomberg Television interview on Wednesday.