Shares of highly shorted Hertz and Avis Budget Group surged on Thursday as U.S. President Donald Trump's plan to slap a 25% tariff on imported vehicles raised prospects of consumers opting for car rentals instead of buying expensive new cars.

The rental car giants are having a rough year in terms of share price, but they unexpectedly hit the gas following the new levy on vehicle imports. On Thursday, stocks of car rental companies Hertz and Avis saw their values unexpectedly take off.