What Happened to Hertz Global Holdings (HTZ) Stock?

Hertz Global Holdings, a prominent car rental company, faced an unprecedented crisis in early 2020. Already burdened with significant debt, the onset of the COVID-19 pandemic and the subsequent collapse in travel demand severely impacted its operations. The company announced it had missed lease payments on its fleet and, unable to reach an agreement with lenders, filed for Chapter 11 bankruptcy protection on May 22, 2020. This move, which included its U.S. and Canadian subsidiaries, aimed to restructure its substantial debt, which stood at over $17 billion.

During its bankruptcy proceedings, Hertz's stock became an unexpected phenomenon, attracting significant attention from retail investors and gaining 'meme stock' status. Despite warnings that the common stock could become worthless, its price surged dramatically in June 2020, leading Hertz to attempt an unprecedented $1 billion equity offering before the SEC halted further sales. The company successfully emerged from Chapter 11 bankruptcy on July 1, 2021, with a significantly stronger balance sheet, having eliminated over $5 billion of debt and securing more than $2.2 billion of global liquidity. Creditors were paid in full, and existing shareholders received substantial value.

Following its emergence, Hertz, under new leadership, embarked on an ambitious strategy to electrify its fleet. In October 2021, the company announced a massive order for 100,000 Tesla vehicles, followed by additional orders for Polestar and GM EVs, aiming for electric vehicles to comprise a significant portion of its fleet. This bold move was intended to position Hertz as a leader in sustainable mobility and cater to growing demand for EVs.

However, the EV strategy soon encountered significant headwinds. By late 2023 and early 2024, Hertz began to report higher-than-expected costs associated with its EV fleet, including rapid depreciation, higher repair and maintenance expenses (especially for Teslas), and lower customer demand for EV rentals due to charging infrastructure concerns. These challenges led to substantial financial losses and a strategic reversal. In January 2024, Hertz announced plans to sell approximately 20,000 EVs from its U.S. fleet, about one-third of its global EV fleet, and reinvest the proceeds into internal combustion engine (ICE) vehicles. This divestment continued throughout 2024, with the company ultimately selling 30,000 EVs by late 2024, incurring a significant $2.9 billion loss in 2024.

In March 2024, CEO Stephen Scherr, who spearheaded the EV initiative, stepped down and was replaced by Gil West, a transportation veteran. Under West's leadership, Hertz shifted its focus to a 'back-to-basics' strategy, emphasizing operational efficiency, disciplined fleet management, and improving the profitability of its core rental business. The company also continued to adjust its EV strategy, focusing on placing EVs in markets with higher demand and better charging infrastructure.

As of August 7, 2026, Hertz is showing signs of a strong turnaround. The company reported robust Q1 and Q2 2026 results, with Q2 revenue rising 10% year-over-year to $2.4 billion and a return to GAAP net income of $64 million, or $0.05 per diluted share, compared to a net loss in the prior year. Adjusted Corporate EBITDA also saw significant improvement. Hertz is focusing on optimizing its fleet, improving revenue per day (RPD) and revenue per unit (RPU), and expanding its Oro Mobility platform, which includes rideshare and future robotaxi services. Despite ongoing challenges like vehicle recalls, the company's leadership projects continued EBITDA improvement and aims for full-year GAAP profitability and positive free cash flow by 2027.