Seth Basham, the managing director of hardline retail equity research at Wedbush Securities, joined Cheddar News to discuss the firm downgrading the car vending machine purveyor Carvana to a neutral rating. "We're looking at unit sales running right now under 400,000 per year, which is well below consensus expectations, and when you're selling so many fewer units than previously and you have a cost space that's designed to support much higher unit sales. It leads to a lot of costly leverage and profitability pressure," he said.