Uncovering the secrets behind the stock market giants: Carvana and Hertz's Tesla conspiracy

The game is like this: Because Hertz Car Rental urgently needs liquidity, it has significantly reduced the entire fleet of 30,000 Teslas, and then sold 100% of them on the Carvana platform, while using social media to create momentum, attracting the attention of a large number of Tesla/Musk fans, and then selling Tesla cars at a relatively high price, earning much higher profits and profit margins than normal business. This is why when I asked other used car platforms, they had never heard that Hertz Car Rental was seeking to sell used cars, because it was a black box operation and all were sent to a certain platform. Carvana secretly sold 10K cars in the first quarter, and used Vroom's turbine to create the illusion of profitability - all of which were clear to the management, so no one sold the stock, and even one bought. After the first quarter report came out, on the one hand, it used Vroom's turbine to create profits, and on the other hand, it used the sales of Hertz's Tesla fleet to create the illusion of taking market share against the trend, and then cooperated with several New York institutions to jointly manipulate the market, and the stock soared 40% after the market. It was because we did not understand the dynamics behind this that we suffered losses from short positions in this company in the first half of the year.

Why did it soar again recently? Because Hertz announced that it would speed up the sale of Tesla on the Carvana platform, which gave these institutions another opportunity to squeeze out the shorts (although the short-selling ratio of outstanding shares has dropped from 29% to 22%). I would still be more cautious about shorting at this position, because there will be 20K Teslas sold on the Carvana platform in the second and third quarters, and the profit margins of these cars will be very high - this is why the management confidently said in the first quarter earnings call that our adjusted EBITDA rate in the second quarter will further improve.

These institutions set up the scheme, and Garcia was responsible for continuously selling his own stocks every day. He would also short squeeze from time to time to attract WSB to follow suit. He is worthy of having a felonious daddy as CEO - it also refreshed my understanding of the US stock market.