Avis Budget Group Inc. shares soared 218% to trade at its highest level ever amid a flurry of retail crazed activity after it said it will play a big role in the increased adoption of electric cars in the U.S.
“You’ll see us going forward be much more active in electric scenarios as the situation develops over time,” Chief Executive Officer Joe Ferraro told analysts on a call Tuesday.
The stock more than tripled to a record $545.11 in late morning trading in New York, bringing total gains for the year to a whopping 1,300%. The rapid jump in the stock price triggered at least 10 trading halts for volatility as 12 million shares changed hands — more than 20 times what’s been seen over the past month.
The morning rally added more than $18 billion to the company’s market value, which toped the $30 billion mark. At that level, Avis briefly became the largest component of the Russell 2000 Index, surpassing another retail investors’ favorite AMC Entertainment Holdings Inc. The share had been pared back to around $332 — a gain of a mere 94% — by early afternoon.
Avis didn’t disclose any plans to add EVs to its fleet after rival Hertz Global Holdings Inc. agreed to buy 100,000 cars from Tesla Inc. But company executives said that doesn’t mean they aren’t pursuing potential deals for EVs.
“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 on the call.
Tuesday’s surge came as Avis was mentioned alongside other retail-trader favorites on Reddit’s WallStreetBets thread and chatroom Stocktwits.
Mentions of the company’s ticker rivaled the likes of Tesla Inc. and GameStop Corp., the original meme, across WallStreetBets Tuesday. It was also the number one trending company on Stocktwits.
Short interest for Avis has remained elevated and is near the highest level in at least a year, according to S3 Partners. About 21% of Avis’s free float is held short, S3 Partners’ data show
