(Bloomberg) Shares of Avis Budget Group Inc. rose as much as 218% to a record $545.11 following announced plans of a bigger role in facilitating electric car uptake in the US.
Avis Group CEO Joe Ferraro said that the company will become more active in EV scenarios, which fueled a retail frenzy on the stock.
Increased retail activity on Avis Group stock triggered more than 10 trading halts due to volatility, with up to 12 million shares changing hands. The trading was more than 20 times the total over the past month.
Avis Group market cap topped the $30 billion mark, after adding at least $18 billion in value following the trading frenzy. The stock is now up 1,300% for the year.
Following the retail frenzy, Avis temporarily became the largest component on the Russell 2000 Index, overtaking retail investors’ favorite meme token AMC. Avis also dominated chats on Stocktwits and Reddit’s WallStreetBets.
Avis did not outline the plans to add the EVs to its fleet but says it is not ruling out potential deals.
S3 Partners data show that about 21% of Avis’s free float is held short, with the short interest in the company shares near its highest in at least a year.
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