On June 24, 2022, Barron’s published an article that raised matters, among other things, that Carvana “was selling cars faster than it could get them registered to their new owners,” and had been “issuing multiple temporary license plates from states where it has dealer’s licenses, instead of promptly providing permanent ones.” The article also disclosed that "state regulators across the U.S. have been subjecting the company to suspensions or increased oversight over registration delays and its practice of issuing multiple temporary license plates from states where it has dealer’s licenses, instead of promptly providing permanent ones."

Thus, Carvana was violating laws and regulations in many existing markets, consequently, risking its ability to continue business and increasing the risk of governmental investigation and action.

As a result, Carvana was facing imminent and ongoing regulatory actions including license suspensions, business cessation, and probation in several states and counties including Arizona, Illinois, Pennsylvania, Michigan, and North Carolina.

On this news, Carvana’s stock fell by 21.5% over the next 2 trading days after the Article release to close at $24.74 per share on June 28, 2022.