Bill Ackman just dropped a $46 million bag on Hertz ($HTZ), grabbing a 19.8% stake and ripping the stock over 100% since this news dropped, fueled by a massive short squeeze. ​

‍

‍

Why Hertz?

On the surface, Hertz looks like a piece of shit: a $2.9 billion loss last year, a failed EV pivot with Tesla, and $18.3 billion in debt. But Ackman sees gold in their 500,000-vehicle fleet. With Trump's 25% tariffs on imported cars, used car prices are set to skyrocket, potentially increasing the value of Hertz's fleet by over $1 billion. ​

‍

‍

The Turnaround Plan

New CEO Gil West is coming in hot, ripping out the deadweight and rebuilding this thing from the bottom up. First order of business: slash unnecessary overhead and bring back operational discipline. West, who used to run ops at Delta and GM, knows how to scale logistics like it’s second nature.

‍

Hertz is also now deploying AI-powered inspection tech from UVeye. Think facial recognition, but for cars. This system scans vehicles with military-grade precision in seconds, catching damage, wear, and maintenance needs faster than any human tech ever could. That means faster turnarounds, less downtime, fewer lemons hitting the lot, and way more margin per rental.

‍

‍

With 500,000 cars on the books, shaving even a few bucks per vehicle in servicing could mean tens (if not hundreds) of millions back on the income statement. West is setting Hertz up to run lean, run smart, and squeeze every dollar out of its underutilized assets.

‍

Potential Uber Partnership?

‍

Ackman is also floating the idea of a potential strategic partnership between Hertz and Uber, centred around the deployment of utonomous vehicles. The logic here is straightforward: Hertz owns one of the largest vehicle fleets in North America, and Uber has the ride-hailing infrastructure but lacks a fully controlled fleet. A collaboration between the two could solve that friction.

‍

By combining Hertz’s underutilized vehicle inventory with Uber’s autonomous driving ambitions, both companies could gain a competitive edge. Hertz provides the physical assets and operational scale, while Uber brings the software stack and customer interface. Together, they could accelerate the rollout of a national autonomous fleet without either party having to build the full stack from scratch.

‍

This is all hypothetical, but reasonable. For Hertz, it’s a chance to shift from a legacy rental model to a tech-enabled mobility platform. For Uber, it’s a fast lane to asset-backed autonomous deployment. If executed, this partnership could position Hertz as a key player in next-gen transportation, more than just a bankrupt rental company.

‍

The Bottom Line

Ackman isn't just betting on a turnaround; he's actively involved in steering it. He projects that Hertz's stock could reach $30 by 2029. While the company faces significant challenges, the combination of asset appreciation, operational improvements, and strategic partnerships could pave the way for 2016 NBA finals Golden State 1-3 comeback.

‍
We don't own any shares of $HTZ, this is not financial advice, we are not affiliated with $HTZ. This was all pulled from public sources and what we believe to be accurate. We are only human after all.