Shares of Hertz Global (NYSE:HTZ) jumped more than 25% at Thursday’s open after Bill Ackman’s Pershing Square Capital Management disclosed a 20% stake in the car rental company worth $46 million.
The stock had already surged 50% in aftermarket trading the previous evening, marking one of Hertz’s sharpest rallies in years amid renewed investor optimism.
Hertz has faced significant challenges since filing for bankruptcy in 2020, following a collapse in travel demand during the pandemic. It returned to the public markets in 2021 and attempted to reinvent itself by embracing electric vehicles, placing a high-profile order for 100,000 Teslas.
However, the EV strategy backfired as customers remained hesitant over charging logistics, prompting Hertz to sell off much of its electric fleet in 2024 at a loss. The company ended last year with a $2.9 billion net loss.
Despite these setbacks, recent developments have given Hertz a potential lifeline. The firm could benefit from higher used car prices due to proposed tariffs on imported vehicles by former President Donald Trump, thanks to its large inventory of ex-rentals.
Ackman’s move comes as new CEO Gil West implements a turnaround strategy, including cost cuts, fleet restructuring, and the use of AI-powered vehicle inspection tech through a partnership with UVeye. Although the company just disclosed a data breach affecting customer information, investor focus has shifted to Ackman’s involvement—widely seen as a potential catalyst for operational and strategic change.
Hertz shares remain well below their 2021 highs, but the market is now watching for signs of a recovery.