A Hertz Tesla electric vehicle was prominently displayed during the Hertz Corporation IPO at the Nasdaq Market site located in Times Square, New York City, on November 9, 2021. The IPO was a significant event, marking the companys recovery following its bankruptcy, and highlighted its commitment to embracing electric vehicles in its rental fleet.

On Friday, Hertz Global CEO Gil West expressed both encouragement and excitement regarding prominent investor Bill Ackman's substantial investment in the company. In an internal message directed to employees, which was subsequently made available to CNBC, West emphasized the positive implications of this investment as part of his weekly address to staff.

These remarks came just two days after Ackmans investment firm, Pershing Square Capital Management, disclosed its substantial stake in Hertz. This announcement had a pronounced effect on the stock market, resulting in Hertz's shares more than doubling during trading this week, ultimately closing at an impressive $8.24 per share on Thursday.

Let me start by saying I am humbled, and we should all feel encouraged by Bill Ackman's comments and energized by the strong support shown by him, Pershing Square Capital Management, and others who share confidence in our strategy, West stated. He took the reins at Hertz in April 2024, and his leadership has since steered the company toward a positive trajectory. This endorsement serves as a testament to the progress we are making and is a recognition of the relentless effort each of you contributes every day, he added, reinforcing the importance of teamwork and dedication in navigating the company's recovery.

While Hertz itself declined to comment further on Ackman's stake in the company, a regulatory filing revealed that Pershing Square had initially acquired a 4.1% position at the end of 2024. However, Ackmans firm has since significantly increased its position to 19.8% through a combination of direct shares and swap agreements, making it the second-largest shareholder in Hertz. A source familiar with the situation informed CNBCs Scott Wapner about this development.

Moreover, the source disclosed that Ackman's investment firm was granted an exemption by the U.S. Securities and Exchange Commission (SEC), allowing it to postpone the filing of its position until Wednesday. This exemption afforded Pershing Square the opportunity to accumulate a considerably larger number of shares without immediate disclosure.