rewrite this title Hertz shares surge more than 50% after Bill Ackman takes big stake in the rental car firm

Bill Ackman’s Pershing Square took a sizable stake in Hertz, the rental-car company that exited from bankruptcy four years ago, sparking a big rally.

Shares of Hertz surged 56% on Wednesday after a regulatory filing revealed Pershing Square had built a 4.1% position as of the end of 2024. Pershing has significantly increased the position — to 19.8% — through shares and swaps, becoming Hertz’ second largest shareholder, a person familiar with the matter told CNBC’s Scott Wapner.

The person said Ackman’s investment firm received an exemption from the SEC to delay the filing of the position until Wednesday, which allowed it to accumulate substantially more shares.

Hertz has been a troubled company for much of the past decade, including bankruptcy during the coronavirus pandemic in 2020.

Following its emergence from Chapter 11 bankruptcy in 2021, the company bet heavy on all-electric vehicles, specifically Teslas, which cost the company billions following a significant decline in their residual values.

When reporting its 2024 fourth-quarter earnings in February, it revealed a $2.9 billion loss for the year, which included a $245 million loss on the sale of EVs during the fourth quarter.