"Carvana management deserves credit for executing on cost saving and taking decisive action to provide significant financial breathing room with relatively little dilution to equity holders," Jonas explained. "However, significant challenges remain with respect to the used car consumer and the viability of CVNA's long term business model. Even considering our expectation of continued recovery in the business and less bearish views on the used car market, the stock's reward-skew and 20% downside to PT move us to Underweight."