On June 23, 2023, before the market opened, Forbes released an article entitled “The Untold Story of HyperSport, Carvana’s Mysterious And Scandal-Plagued Former Vendor.” The article stated, in pertinent part, that HyperSport was submitting duplicate invoices to Carvana, which were then in turn being processed. As one Carvana manager stated, “they would charge multiple times for the same repair. I know for a fact they were doing that.” The article also alleged that even though Carvana has never disclosed a relationship with HyperSport in its filings, that the two firms are linked. Specifically, it alleged that HyperSport technicians worked alongside Carvana technicians despite being underqualified. The reason for this relationship, the article alleged, was that “HyperSport was controlled by a Carvana manager or his associates- and that as a result, HyperSport was incentivized to push through duplicate invoices to Carvana and skimp on buying its own supplies.” A former Carvana employee was quoted in the article as saying “we had a feeling that someone was getting a kickback out of this. It didn’t make sense.”

On this news, Carvana’s stock price fell $4.13 per share, or 16.1%, to close at $21.41 on June 23, 2023.