FedEx Stock Rebounds on Electric Truck Investment Praise
FedEx Corp. (FDX) saw its stock rise 1.6% last week, breaking a four-week losing streak, after investor Ross Gerber praised the company's commitment to fleet electrification. Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, lauded FedEx's $300 million order for 2,000 electric trucks from Harbinger Motors, set for delivery by 2027. These trucks will replace an equal number of gas-powered vehicles, potentially saving FedEx about $40 million annually in fuel costs.
Gerber also called on Amazon.com Inc. and the U.S. Postal Service to transition away from gas-powered delivery fleets. FedEx's move comes as logistics companies grapple with high diesel prices and increasing pressure to adopt cleaner vehicle fleets. The company aims to make all parcel delivery vehicle purchases electric by 2030 and already operates nearly 9,500 electric vehicles globally.
In addition to electrifying its ground fleet, FedEx is expanding its use of sustainable aviation fuel (SAF). On September 15, the company secured agreements to procure over 20 million gallons of neat SAF across five U.S. airports by 2027. FedEx is targeting 30% of its jet fuel to come from blended alternative sources by 2030.
Amazon is also making strides in electrifying its fleet, with plans to deploy 100,000 Rivian electric vans by 2030 and adding electric trucks from Mercedes and Volvo. The company aims to achieve net-zero emissions by 2040. While FedEx stock edged slightly lower overnight, retail sentiment around FDX improved to 'neutral' from 'bearish,' and sentiment around AMZN turned 'bullish' from 'neutral.'