What happened

Easy come, easy go. Shares of Carvana (CVNA -3.45%) are resuming their slide one day after posting a 4% gain, but this morning's drop has it trading at some of its lowest levels ever.

At 11:24 a.m. ET on Thursday, the online used car dealer is down 10.8% to $3.86 per share. Although there was no company-specific news to account for the decline, there aren't many people left believing Carvana will survive.

A falling red arrow over $100 bills.

Image source: Getty Images.

So what

Yesterday was a bit of a surprise as the increase in the stock price came after a formerly bullish analyst changed his rating on the stock from buy to hold and slashed his one-year price target from $50 per share to $5 per share. If the used car dealer could hit even that meager level, it would represent a near 30% gain.

Like most other analysts covering Carvana, Truist analyst Naved Khan has comes to see much more risk in the stock from a debt restructuring.

Carvana's stock had jumped 9% at one point yesterday, only to finish the day 3.8% higher.

Now what

Carvana’s largest debtholders, including Apollo Global Management and Pacific Investment Management, have reportedly agreed to come together if the used car dealer does go bankrupt, which will help them streamline negotiations in court.

Although Carvana denies it is in such dire straits, news reports about it have helped drive shares down. The used car dealer's stock has fallen 98% from a 52-week high of $245 per share.