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EV Rental Market Value

EV Rental Market

With the strong interest of Avis purchasing 100,000 tesla vehicles their market valuation has shot through the roof. As stated by Axios:

Hertz and Avis have discovered the magic that electric vehicles can have on share prices, Felix writes.

Why it matters: Both companies have increased in value after announcing ambitious plans to move aggressively into renting out EVs.

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.