The day before $CAR imploded, I called it on this subreddit. I may be wrong here, but I believe it has room to further implode.

The average analyst PT is $120, with a number of recent downgrades. The fundamentals haven't changed, the company is still in financial hell. They have $28.6 billion debt (41.73k of debt per vehicle, and this will only increase as they are working on shrinking their fleet size), including $6 billion in corporate debt compared to a $5.929 billion market cap. They had a billion in revenue losses last year. They have to do a share offering, or equity, or take out more debt while refinancing their current debt. The most reasonable criticism I have heard of the idea that they'll do a share offering is they reportedly already tried but their stock price is too high and no one wanted to buy in.

Another concern for the bulls here is that this thing seems to have a very fragile technical support. The 200-day MA is at $158. Even a small drop from a share offering could cause a cascade of selling, and if it loses $158 there no telling how far it will fall. Additionally, according to WeBull, as of this moment, less than ONE PERCENT of $CAR shares held by investors are in net positive (0.96%). Most retail investors who are still hodling are hoping for a bounce, if that doesn't materialize, I would suspect many more will bail.

They also have an active lawsuit against them for leaking customer data and they've agreed to settle it (more money down the drain). RSI was so high that it still isn't oversold even after a 75% crash (currently 42). Momentum and MACD on the daily have not yet started reversals either.

There are a few things that could undermine this short thesis. For one, the stock has plunged so low, that any perceived good news could result in a price jump, regardless of how irrational. They could announce layoffs or strategic cost-cutting measures or one good financial datum. You see this with biotech stocks sometimes. They could also beat earnings. Though this year has been slow for travel, and oil prices shot up in February, and consumers are reporting relying more on credit cards and feeling tighter finances due to inflation, tariffs, and other macroeconomic conditions, there were reports that a lot of travelers were foregoing airlines and using rental cars instead.

In any case, we'll see tomorrow: judgment day. Price target: below $130.

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