05:04 AM EST, 01/03/2025 (MT Newswires) -- (Updates with a statement from Carvana ( CVNA ) and the company's stock move in the last two paragraphs.)

Carvana ( CVNA ) shored up its numbers through "related-party accounting games" while its market was falling, short-seller Hindenburg Research said in a report Thursday.

"For example, Carvana's ( CVNA ) increase in borrower extensions is enabled by its loan servicer, an affiliate of private car dealership DriveTime, run by Carvana's ( CVNA ) CEO's father," Hindenburg said in its report. "The company seems to be avoiding reporting higher delinquencies by granting loan extensions instead."

Hindenburg said the online used car dealer could've raised "significant" capital and de-risked its balance sheet any time during its "two incredible stock runs."

"Instead, the company has pushed off creditors and engaged in accounting games while the CEO's father dumps billions in stock," Hindenburg said. "We think Carvana ( CVNA ) is truly an accounting grift for the ages - we see rough times ahead for both stockholders and bondholders."

A Carvana ( CVNA ) spokesperson told MT Newswires that the arguments in the report are "intentionally misleading and inaccurate." According to the spokesperson, similar arguments have been made by other short sellers seeking to benefit from Carvana's ( CVNA ) stock price decline.

The company's shares were down more than 3% premarket Friday.