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Hertz shares go through the roof as auto tariffs seen boosting fleet value

Mar 28, 2025 - financialpost.com
Hertz Global Holdings Inc. and Avis Budget Group Inc. experienced significant stock surges, each rising over 20%, following the announcement of new U.S. auto tariffs. These tariffs, set at 25% on fully assembled vehicles, are expected to increase new car prices, thereby boosting the demand and value of used cars. This development has led investors to anticipate higher fleet values for rental car companies like Hertz and Avis, contributing to their stock gains. However, both companies saw slight retreats in their stock prices the following morning.

The tariffs, announced by the Trump administration, are anticipated to raise new car costs by up to $12,000, prompting more consumers to consider used vehicles. This shift is expected to benefit companies dealing in secondhand cars, such as CarMax Inc., which saw a 2.5% increase in its stock. Meanwhile, major U.S. automakers like General Motors Co. and Ford Motor Co. faced stock declines due to their vulnerability to the tariffs, while Tesla Inc. experienced a slight increase.

Key takeaways:

  • Hertz and Avis stocks surged over 20% due to expected increased demand for used cars following new auto tariffs.
  • The Trump administration announced 25% tariffs on fully assembled vehicles, potentially raising new car prices by up to $12,000.
  • Used-car prices may rise by around 3% this year, making secondhand car companies like CarMax potential winners.
  • U.S. automakers like General Motors and Ford saw shares fall, while Tesla's stock rose slightly after the tariff announcement.
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