In a regulatory filing released Thursday, Hertz announced plans to sell a third of its electric vehicles globally, totaling about 20,000. This decision breaks from the car rental giant’s initial goal to make a quarter of its fleet EV by the end of 2024.

Why the change? The filing points to a difference in supply and demand, explaining that some of the sale’s proceeds will go toward purchasing internal combustion engine (gas-powered) vehicles to better match customer demand. The filing also states that collision and damage expenses associated with EVs were high in the fourth quarter.

The car industry’s initial excitement regarding EVs has diminished in recent quarters. Even as early adopters have led the way, few others have followed to fully switch to the new tech. Potential renters and buyers alike may be hesitant to opt for EVs due to a lack of convenient and reliable charging stations, and a steep learning curve for first-time EV drivers.

EV sales in the U.S. grew in 2023, with a 40% year-over-year increase in Q4, but the growth is slower than in previous quarters. In Q3, sales saw a 49% gain. And in Q4 of 2022, they increased by 52% year-over-year, according to data from Cox Automotive.

Hertz says it will continue to pursue initiatives to make its remaining EV fleet more profitable, like “the expansion of EV charging infrastructure, growing relationships with EV manufacturers, particularly related to more affordable access to parts and labor, and continued implementation of policies and educational tools to help enhance the EV experience for customers.”

Hertz will face a $245 million incremental net depreciation expense related to the sale, according to the filing. The EV sales began in December and will continue throughout 2024.