Nov 3, 2021 - Economy
Hertz discloses share sale plan amid Tesla drama
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Hertz on Wednesday disclosed that certain shareholders plan to sell 37.1 million shares via a public offering, up to $500 million of which will be repurchased by the car rental giant.
Why it matters: This comes amid a bizarre conflict between Hertz and Tesla over whether or not Hertz agreed to buy 100,000 electric vehicles from Tesla.
- Hertz has said it made the order and that deliveries have already begun. Axios asked for a redacted copy of the agreement, or at least clarification in light of a tweet from Elon Musk about how no such deal has been signed. Hertz declined.
The largest selling shareholder would be an investment fund associated with Greg O'Hara, who was named Hertz's chairman in June.
- Hertz shares fell on the news, but are still substantially higher than before the Tesla "order" was announced.
- The stock, which was at $32.20 as of this writing, also remains above where Hertz says it expects the shares to sell ($25-$29).
