Shares of Hertz Global Holdings Inc. experienced a remarkable surge on April 16, 2025, marking their biggest gain ever after an announcement from Pershing Square Capital Management revealed a significant investment in the beleaguered car rental company. The stock price soared by 56% following reports that billionaire investor Bill Ackman’s firm had amassed a nearly 20% stake in Hertz, making it the company’s second-largest shareholder.
According to a regulatory filing, Pershing Square disclosed it had acquired 12.7 million shares valued at approximately $46.5 million at the time of purchase. This move signaled a renewed confidence in Hertz, which has struggled in recent years, particularly after declaring bankruptcy during the COVID-19 pandemic in 2020. The filing indicated that Pershing Square’s total position in Hertz, which includes shares and swaps, reached about 19.8%.
Scott Wapner of CNBC reported that the firm had received an exemption from the Securities and Exchange Commission (SEC) to delay the filing of its position, allowing it to accumulate a larger stake before making the announcement. The news of Ackman’s investment has sparked optimism among investors, who are betting on a potential turnaround for Hertz.
Hertz has had a tumultuous history, particularly since its bankruptcy filing in 2020. After emerging from Chapter 11 bankruptcy in 2021, the company made a bold bet on all-electric vehicles, specifically Teslas. However, this decision proved costly, with Hertz facing significant financial challenges due to a decline in the residual values of these vehicles. In its fourth-quarter earnings report for 2024, Hertz revealed a staggering $2.9 billion loss for the year, which included a $245 million loss from the sale of electric vehicles.
Despite these challenges, Hertz's stock has shown signs of recovery recently, as investors anticipate a shift in consumer behavior toward used-auto purchases. With rising new-car costs attributed to tariffs, there is a growing belief that consumers may increasingly turn to ex-fleet cars, which Hertz has in abundance. This shift in consumer preference has contributed to a positive outlook for the company.
As of April 16, 2025, Hertz’s stock had rallied 17% for the year, buoyed by the news of Ackman’s investment and the broader market trends favoring used vehicles. With a renewed focus on profitability and a strategic pivot toward electric vehicles, Hertz is working to regain its footing in the competitive car rental market.
Investors are closely monitoring the developments at Hertz, particularly how Ackman’s involvement may influence the company’s direction moving forward. As a prominent figure in the investment community, Ackman’s backing could provide the necessary momentum for Hertz to navigate its way back to stability and profitability.
In summary, Hertz Global Holdings Inc. stands at a pivotal moment in its history, with Bill Ackman’s Pershing Square Capital Management taking a significant stake in the company. This investment has not only driven the stock price higher but also reignited hopes for a turnaround in a company that has faced considerable challenges in recent years. As the automotive landscape continues to evolve, all eyes will be on Hertz to see if it can capitalize on this newfound momentum and deliver value to its shareholders.
