High Debt and Profitability Concerns: Carvana carries a significant debt load and has faced challenges in achieving consistent profitability, raising questions about its long-term financial health and ability to generate positive free cash flow.

Volatile Used Car Market Dynamics: Carvana's business is highly dependent on the supply, demand, and pricing trends in the used car market, which can be unpredictable and subject to macroeconomic factors, impacting sales volume and margins.

Operational Logistics and Scaling Costs: Managing a complex national network for vehicle reconditioning, inventory storage, and last-mile delivery is inherently costly and challenging to scale efficiently while maintaining quality and speed.