Apple Inc. AAPL will rent half a dozen cars from Hertz Global Holdings, Inc HTZ subsidiary Donlen, reported Bloomberg.
The information was obtained from California Department of Motor Vehicle documents detailing Apple’s license to test three autonomous cars.
The news comes not long after Apple CEO Tim Cook told reporters the company was focusing on “autonomous systems” rather than its original plan for an entire self-driving car.
It also comes just hours after the announcement that Hertz competitor Avis Budget Group Inc. CAR formed a partnership with Alphabet Inc GOOG GOOGL’s autonomous vehicle division, Waymo.
The Avis-Waymo deal will take the form of Avis servicing 600 of Waymo’s self-driving cars in Phoenix, Arizona.
Stock Movements
Hertz shares jumped 12.5 percent to $10.70 on Avis’ news Monday morning and were trading in the high-single-digit percentages before the Bloomberg report at 2:24 p.m. ET.
Within three minutes, Hertz shares were up 17.8 percent to $11.27. As of 3:30 p.m. ET, the stock was trading just below $11.
Avis did not move significantly right after the Hertz-Apple news, but had gradually climbed to $27.53 as of 3:30 p.m. ET.
Apple shares did not move on the news.
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_______ Image Credit: By Farhan from Karachi, Pakistan (Faisalabad Hertz) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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