Hertz has had a wild ride over the last few years — from bankruptcy in 2020 to meme stock madness, a failed EV gamble, and now a sudden stock surge that has investors talking again.
After COVID brought travel to a standstill, Hertz filed for Chapter 11 and laid off over 10,000 workers. While Wall Street wrote it off, retail traders on Reddit’s Wall Street Bets saw an opportunity. Against all odds, they pushed the stock up 825%, and when Hertz emerged from bankruptcy in 2021, shareholders actually got paid out — a rare win in bankruptcy court.
Post-pandemic, the stock climbed as high as $27 thanks to travel demand and a tight rental car market. But their bet on Tesla Model 3s backfired. Customers hated the charging hassle for short trips, and in 2024, Hertz dumped 30,000 EVs at a $2.9 billion loss. The stock bottomed out at $2.75.
Now in 2025, it’s surging again — up 120% in just a few days — after hedge fund manager Bill Ackman revealed a nearly 20% stake. Why? Because tariffs on imported vehicles are pushing car prices up 10–20%. That’s good news for Hertz, which owns over 500,000 vehicles and rotates its fleet every 12–18 months. A 10% bump in used car prices could mean a $1.2 billion boost — nearly half its market cap.
Add in rising repair costs, pricey rideshare options, and more travelers staying domestic due to a weak dollar, and demand for rentals remains strong. Hertz may still face headwinds, but this could be the turnaround play investors didn’t see coming.
Let me know in the comments — is Hertz worth a buy at these levels? And which stock should I break down next?