In a surprising turn of events, Hertz, the renowned rental-car company, has announced its decision to sell approximately 20,000 electric vehicles (EVs), which accounts for about a third of its global EV fleet. This move comes as a major reversal for Hertz, which had previously positioned itself as a champion of electric vehicle technology with plans to significantly expand its fleet of plug-in models.

Hertz disclosed its decision in a regulatory filing on Thursday, revealing that the sale of the EVs in the United States will generate proceeds that will be used to purchase vehicles powered by internal combustion engines (ICE). The company cited weaker demand for electric vehicles and their comparatively higher operating costs as the primary reasons for this strategic shift.

This move by Hertz signifies a significant change in direction, as the company had previously been vocal about its commitment to growing its electric vehicle presence. The sale of a substantial number of EVs suggests that Hertz has reassessed its stance on the technology, likely due to market dynamics and the need for a more sustainable business model.

While electric vehicles have gained significant traction in recent years, with numerous automakers investing heavily in their development, Hertz's decision to sell a significant portion of its EV fleet underscores the challenges faced by rental-car companies in maintaining a balanced and cost-effective portfolio. The weaker demand for EVs and their higher operational costs seem to have influenced Hertz's strategic realignment.

As Hertz takes steps to sell off its EVs, it aims to address the imbalances in its fleet by acquiring internal combustion engine vehicles. By capitalizing on the sale of the EVs, the company hopes to optimize its asset allocation and cater to the demand from customers who still prefer traditional vehicles.

It remains to be seen how this shift in strategy will impact Hertz's position in the rapidly evolving electric vehicle market. As the company reevaluates its stance on EVs, it demonstrates the challenges faced by businesses in adapting to changing trends and consumer preferences.