Avis Stock Surges On Strong Results, Brightening Rental-Car Outlook
Avis Budget Group shares gained 108.3% driven in part by third quarter results that beat analysts’ expectations and included a record adjusted pretax profit of $1 billion. Earlier in the day, shares traded as high as $545 a share, putting pressure on short sellers. Meanwhile, Tesla shares slipped $36.59, or 3%, to $1,172 after Chief Executive Elon Musk said on Twitter that the electric car maker hasn’t yet signed a deal for Hertz to buy its vehicles. Tesla’s shares surged last week after Hertz said it had ordered 100,000 cars. Avis also said it was executing on plans to add more electric vehicles to its global rental fleet and will announce those plans when they are ready. Avis has said it plans to reduce the company’s greenhouse-gas emissions by 30% over the next decade.