"Hertz's Strategic Shift: Selling EVs and the Perils of CEO Groupthink"

Hertz surprised many by announcing the sale of about a third of its global electric vehicle fleet, including Teslas, citing the need to align supply with demand. The move follows a shift in the auto industry's stance on EVs, with several automakers cutting production and prices due to slowing demand. Hertz had previously made large purchase orders of Tesla and GM EVs but is now selling about 20,000 electric vehicles and using the proceeds to buy internal combustion engine cars, expecting to improve its bottom line by $245 million over the next two years. The company's original goal was to have a quarter of its fleet be EVs by the end of 2024, but it has now shifted its strategy for financial and operational reasons.