I’m here at the rental car center — one of the busiest spots at any airport in the U.S. And standing here, it really hits you how massive this business is. Hertz, one of the biggest names in car rentals, is having a moment right now. After years of turbulence, it might actually be a smart buy — especially with auto tariffs about to shake up the market.
Let’s rewind. In 2020, Hertz filed for bankruptcy when COVID decimated travel. The stock plummeted, but then something crazy happened — retail traders, maybe even Wall Street Bets folks, started piling in. The post-pandemic rally pushed the stock all the way up to nearly $27.
Then came the EV gamble. Hertz announced a bold move — buying 100,000 Tesla Model 3s and going big on electric. It looked great on paper, but reality hit hard. Customers complained about charging — it was time-consuming, inconvenient, and didn’t make sense for short trips. Why wait 30 minutes to charge when a few gallons of gas would’ve done the job in 5?
By last year, Hertz had to dump 30,000 EVs — mostly Teslas — and took a massive $2.9 billion loss. The stock tanked to $2.75.
But now? It’s bouncing back. Hard. In the last week, shares jumped over 120%, landing around $8.24 — the highest since early 2024. The big reason? Bill Ackman’s Pershing Square just revealed a huge stake in Hertz. And Ackman doesn’t make moves like that unless he sees real upside.
Here’s the thing — tariffs are jacking up car prices by 10 to 20%. Repairs are getting more expensive too. That might push even people who already own a car to start renting more often, just to avoid wear and tear. So demand for rentals? Still solid — maybe even growing.
Hertz owns about 500,000 vehicles, worth around $12 billion. And rental car companies rotate their fleets every 12 to 18 months. So if used car prices climb just 10%, Hertz could rake in over $1.2 billion in gains — nearly half its entire market cap.
And don’t forget — with fewer Americans traveling abroad thanks to a weaker dollar, and fewer foreigners coming in, domestic travel is still happening. People are still renting cars — to visit family, run errands, or take local trips. Even ride-sharing’s getting pricier. If Uber and Lyft costs jump, more folks might just rent for a day and knock everything out in one go.
Sure, analysts are still cautious, but the math is compelling. High used car values, a massive fleet, rising replacement costs — it’s the perfect setup. That’s why I think Hertz is worth a serious look right now.
And it’s not just Hertz. Avis, Enterprise (privately held), and even used car platforms like CarMax could benefit from the auto tariff wave. But Hertz, with its undervalued stock and recent shakeups, might have the most upside if things go right.
So yeah — standing here at the rental hub, this feels like more than just a pit stop. It might be the start of a turnaround.