{"id":4126,"date":"2025-04-18T21:56:33","date_gmt":"2025-04-18T21:56:33","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/04\/18\/bill-ackman-is-betting-on-car-rental-giant-hertz-to-be-a-tariff-winner\/"},"modified":"2025-04-18T21:56:39","modified_gmt":"2025-04-18T21:56:39","slug":"bill-ackman-is-betting-on-car-rental-giant-hertz-to-be-a-tariff-winner","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/04\/18\/bill-ackman-is-betting-on-car-rental-giant-hertz-to-be-a-tariff-winner\/","title":{"rendered":"Bill Ackman Is Betting on Car Rental Giant Hertz to be a Tariff Winner"},"content":{"rendered":"
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Bill Ackman runs the hedge fund Pershing Square Capital Management. Photo by Jared Siskin\/Patrick McMullan via Getty Image<\/span><\/figcaption><\/figure>\n

President Trump\u2019s auto tariffs may have sparked fears of price hikes among consumers, but some car-buying businesses could actually benefit, according to investor Bill Ackman<\/a>. The Pershing Square<\/a> Capital Management founder made a bullish case for Hertz<\/a> yesterday (April 17), after revealing a nearly 20 percent stake in the car rental company.<\/p>\n

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\u201cHertz is uniquely well-positioned<\/a> in the current tariff environment,\u201d Ackman wrote in a post on X. As 25 percent levies on imported cars drive up used car prices, the value of Hertz\u2019s fleet\u2014around 500,000 vehicles worth roughly $1.2 billion\u2014will rise in tandem, he argued. A 10 percent increase in used car values would boost the company\u2019s fleet value by $1.2 billion, nearly half of Hertz\u2019s current market cap.<\/p>\n

Shares of Hertz surged more than 44 percent following the disclosure of Ackman\u2019s 19.8 percent stake.<\/p>\n

Emerging from bankruptcy and an ill-fated Tesla experiment<\/h3>\n

Hertz has had its fair share of troubles in the past few years. After declaring bankruptcy in 2020 during the Covid-19 pandemic, the company pivoted hard to electric vehicles\u2014placing a costly bet on Tesla that fell flat due to soft demand. In February, Hertz reported a $2.9 billion loss for 2024 and said it had sold off 30,000 EVs from its fleet.<\/p>\n

Ackman, who began building his position in the company last year, is betting on a successful turnaround\u2014and a stock price that could more than triple to $30 per share by 2029.<\/p>\n

That task falls in the hands of Hertz\u2019s new CEO Gil West<\/a>, who stepped into the role in early 2024. West is focused on \u201crotating Hertz\u2019s fleet, increasing unit revenues, and reducing operating costs\u201d to \u201csignificantly improve profit margins over the next several years,\u201d Ackman said.<\/p>\n

In a note to employees today (April 18), West praised Ackman\u2019s support and described it as an \u201ctestament to our progress<\/a>,\u201d according to Bloomberg.<\/p>\n

Ackman also highlighted Hertz\u2019s advantageous position in an \u201coligopoly.\u201d He noted that Hertz and its two rivals, Enterprise and Avis, currently control around 95 percent of the car rental market. Praising Enterprise as the best-run of the trio, Ackman pointed to its estimated 20 percent profit margin as evidence \u201cthat the car rental business can be very profitable.\u201d<\/p>\n

Is a Hertz-Uber partnership on the cards?<\/h3>\n

Ackman floated the possibility of a partnership between Hertz and Uber (UBER)<\/a>\u2014another company Pershing Square has taken a sizable stake in. \u201cWhat if [Uber] partnered with Hertz on an [autonomous vehicle] fleet roll out over time?\u201d he suggested, hinting at a potential conversation with Uber CEO Dara Khosrowshahi<\/a>.<\/p>\n

With its large fleet, global footprint and expertise in vehicle maintenance, Hertz would \u201cmake it an ideal partner\u201d for Uber, Ackman said.<\/p>\n

Uber seems open to the idea. \u201cHertz has been a great partner of ours,<\/a>\u201d Khosrowshahi responded on X. \u201cExcited to brainstorm on how we can expand our relationship!\u201d<\/p>\n

\t\t\t\t\"Bill<\/p><\/div>\n