Hertz Global Holdings, Inc. (HTZ) saw its stock price surge by 5.01% in pre-market trading on Thursday, continuing its impressive rally following news of Bill Ackman's significant investment in the company. The renowned investor's Pershing Square Capital Management has amassed a 19.8% stake in the car rental giant, sparking renewed interest and optimism among investors.

Ackman's strategic move, which began with an initial 4.1% stake and quickly expanded, has more than doubled Hertz's stock price over the past week. The billionaire investor sees potential in Hertz's operating rental business and its valuable fleet of 500,000 vehicles, worth an estimated $12 billion. With new tariffs potentially boosting used-car prices, Ackman projects a $1.2 billion gain on Hertz's fleet, equivalent to half its current market capitalization.

The stock's dramatic rise is further amplified by its limited float, with major shareholders like Knighthead Capital Management and Vanguard holding significant portions of outstanding shares. This setup, combined with a high short interest, has created conditions ripe for a potential short squeeze, driving the stock's volatility and attracting more investor attention. While some analysts remain cautious due to Hertz's recent financial struggles and debt load, Ackman's ambitious $30 price target for 2029 has injected new life into the stock, propelling its ongoing rally.