Hertz CEO shows optimism after Ackman's significant investment

In the United States, Hertz Global Holdings, an established rental car company, has drawn significant attention following the disclosure of a 'significant position' taken by prominent investor Bill Ackman through his Pershing Square Capital Management. In an internal message addressed to employees, Hertz CEO Gil West conveyed feelings of encouragement and energy regarding Ackman's investment, stating it reflects confidence in the company's potential post-bankruptcy. The message also emphasized the hard work and dedication needed as the company moves forward in its recovery strategy. Hertz had emerged from Chapter 11 bankruptcy nearly four years prior but faced challenges during its recovery, including substantial financial losses. In February 2025, Hertz reported a $2.9 billion loss for the year, underscoring the difficulties of their ongoing business turnaround plan. West's commentary acknowledged the noise surrounding the recent developments, as Hertz has been a subject of scrutiny by investors both optimistic and pessimistic about its stock value. Amid these changes, Ackman has also issued a cautious note regarding Hertz’s stock value, warning investors about potential risks despite his own bullish outlook. He believes the shares could rise to $30 each by 2029 based on factors like increased vehicle tariffs potentially raising the value of its fleet and an expected partnership with Uber. However, skeptics have pointed to Hertz's ongoing debt issues and operational challenges that could hinder attaining such targets. The state of affairs raises significant questions about Hertz's financial health and long-term viability within the competitive vehicle rental market, which is dominated by a few key players including Enterprise and Avis, who hold a combined market share of 95%. As the company implements strategic changes under West's leadership, the interactions between investor sentiment and operational realities will be critical to watch as stakeholders navigate the road ahead.