Rental vehicle stocks pop after turn to electric vehicles
Hertz and Avis have discovered the magic that electric vehicles can have on share prices.
Why it matters: Both companies have increased in value after announcing ambitious plans to move aggressively into renting out EVs.
Driving the news: Hertz stock — which still trades on the pink sheets ahead of an anticipated "re-IPO" later this year — rose sharply after the company said it would buy 100,000 cars from Tesla.
- Avis shares doubled on Tuesday after the company indicated it planned to move in the same direction.
The intrigue: Hertz shareholders aren't waiting for the IPO to get out of the stock. The company announced a $1 billion secondary offering on Wednesday.
The bottom line: Hertz and Avis are now full-fledged meme stocks. Short at your peril.