Today, rental car company Hertz (OTCMKTS:HTZZ) is gaining traction in the market. Shares of HTZZ stock have surged nearly 9% at the time of writing on very heavy volume.
This move comes as Hertz emerged out of bankruptcy roughly four months ago. Investors banking on pandemic reopening plays have generally been rewarded by picking some of the highest-leverage options out there. In this regard, Hertz’s restructuring provides a high-risk, high-reward upside many speculators are seeking right now.
As a result of the company’s previous restructuring, Hertz is now able to make investments the company was previously unable to. A key announcement for a large order of 100,000 vehicles has sent HTZZ stock on a nice ride today.
Let’s dive into why this is the case.
HTZZ Stock Higher on Massive Tesla Order
Car rental companies order in bulk all the time. It’s part and parcel of the business model of Hertz and its competitors.
However, today Hertz announced the order of 100,000 Tesla (NASDAQ:TSLA) vehicles. This $4.2 billion order is the largest single order for electric vehicles ever. Accordingly, investors bullish on the electrification trend have a lot to like about what this deal means for the EV sector.
Such a significant EV order implies Hertz sees a demand shift among its consumer base. The company is clearly looking to make waves as an EV-first company. Accordingly, in addition to this order, Hertz announced the company would be building its own charging infrastructure to support this purchase.
Hertz appears intent on continuing to electrify its fleet over time. Indeed, this is a big first step in this direction. Accordingly, investors bullish on where Hertz could potentially go from here are cheering this announcement.
As Hertz prepares for its initial public offering (IPO) on the Nasdaq, investors have a lot more to consider with this stock today. Indeed, HTZZ stock is one investors will want to watch in the weeks to come.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.