The Zhitong Finance App learned that US auto dealer stocks soared on Tuesday because July PPI data raised the possibility that the Federal Reserve would cut interest rates, driving up the general market, and individual stocks that are sensitive to interest rates rose sharply. Carvana (CVNA.US) closed up 9.75% to $146.49 on Tuesday. The company's “leading industry” quarterly results continued to drive its share price close to a 30-month high.

Also, KMX.US (KMX.US) closed up more than 4% on Tuesday, while Lycia Auto Company (LAD.US) and Auto China (AN.US) rose nearly 3%.

Despite this, Carvana's share of short holdings was 13.3%, which is still higher than that of other similar companies. Among them, Chemex is 12%, Licia Auto Company and Auto Country Company are 10%, and CarGurus (CARG.US) is 9%.

One reason for the high short positions may be ongoing doubts about Carvana's second-quarter results, particularly gross profit of more than $7,000 per product.

“This number is not only eye-opening in terms of total volume and absolute value, but also shocking in relative values and components,” said Seeking Alpha Investor CashFlow Hunter. In contrast, Chemex's gross profit per product was $2,300.

Despite doubts that Carvana can make such a high profit from every car, bears have certainly felt the pressure over the past 6 months, as Carvana's stock price has soared 172%, while the S&P 500 index has risen by only 10% over the same period.

CashFlow Hunter admitted: “I'm not going to just short Carvana because it could be a pain.”

Overall, Wall Street analysts rated Carvana a “moderate buy”, with an average target price of $163.83.