Hertz Stock Soars on Apple Partnership

Hertz Stock Soars on Apple Partnership

As per Bloomberg, the Cupertino-based tech giant is getting the Lexus RX450h sport-utility vehicles from Hertz’s Donlen fleet-management unit, according to documents released by the California Department of Motor Vehicles.

Shares of Hertz Global (HTZ) were climbing by more than 13% on heavy trading volume Monday afternoon, following a Bloomberg report that the auto rental service company is going to be teaming up with Apple (AAPL) to lease a small fleet of vehicles.

Sources familiar with the situation told CNBC that Apple is leasing six cars from a Hertz subsidiary for autonomous software testing.

An Apple spokesman declined to comment, while a representative for Hertz didn’t immediately respond to a request for comment on Monday.

Apple originally started it self driving auto project by trying to build the hardware, it then switched to a software only approach using existing vehicles. The shares saw a small pop earlier in the day, after Alphabet and Avis announced a similar partnership with 600 vehicles.

As of this writing, Hertz shares have jumped just about 13% on the news of the deal.

Apple’s vehicle project, which is known as Project Titan internally, has endured its own problems after spiralling costs and headcount.

CEO Tim Cook acknowledged that such a system was the focus of Apple’s automotive efforts in an interview with Bloomberg Television earlier this month.