What's Going On With Carvana Stock Friday

Carvana Co CVNA stock is trading lower Friday amid reports of former employees charging vendor HyperSport Industries of underhanded dealings.

The employees accused HyperSport, an automotive reconditioning contractor, of dishonest dealings, including stealing from Carvana, Forbes reports.

Alexander Cabrera and two former Carvana managers who worked in Carvana-owned reconditioning facilities blamed HyperSport for submitting duplicate invoices. HyperSport, they said, would charge multiple times for the same repair.

From 2017 until at least 2022, HyperSport technicians worked alongside Carvana technicians at over a dozen Carvana inspection and reconditioning centers (known as “IRCs”), according to eight former Carvana employees who worked as managers, technicians and inventory coordinators across the company’s facilities.

Reportedly HyperSport employees were often underqualified to work for Carvana, bringing them under the control of a Carvana manager or his associates who incentivized HyperSport to push through duplicate invoices to Carvana and skimp on buying its supplies.

Today Carvana’s stock is down over 90% from its peak. It laid off 4,000 employees–over 20% of its workforce in 2022.

Price Action: CVNA shares traded lower by 8.42% at $23.44 on the last check Friday.