They are following in Hertz’s footsteps.
Unlike Hertz, they’ve not specified any EV models.
The announcement sent its stock to record highs.
Obviously, such an announcement will do good for stock values. And it has had an impact as Avis Budget Group’s shares soared an incredible 108% following the announcement. In fact, their stock rally added more than $18 billion to its market value which reached $30 billion.
“You’ll see us going forward be much more active in electric scenarios as the situation develops,” Chief Executive Officer Joe Ferraro told analysts on a conference call Tuesday as reported by Bloomberg (subscription required).
Unlike Hertz which formally announced their intentions to purchase 100,000 Tesla vehicles, Avis executives did not disclose any specific details about their plans.
“The reason you haven’t heard from us publicly is because for competitive reasons, we like to execute on our strategy before announcing it,” Chief Financial Officer Brian Choi said.