FedEx Stock Rebounds on Investor Praise for Electric Truck Order

FedEx Corp. (FDX) saw its stock rebound last week, ending a four-week losing streak with a 1.6% gain. Investor Ross Gerber, CEO and co-founder of Gerber Kawasaki Wealth and Investment Management, praised the company’s commitment to electrification. FedEx has ordered 2,000 electric trucks from Harbinger Motors for $300 million, aiming to replace an equal number of gas-powered vehicles by the end of 2027. Gerber also called on Amazon.com Inc. and the U.S. Postal Service to transition to cleaner fleets.

The electric trucks are expected to save FedEx approximately $40 million annually in fuel costs, with each vehicle cutting expenses by around $20,000 compared to diesel trucks. FedEx plans to make all parcel delivery vehicle purchases electric by 2030 and already operates nearly 9,500 electric vehicles globally. The move comes as logistics companies face high diesel prices amid geopolitical tensions, such as the Iran war.

In addition to electrifying its ground fleet, FedEx is expanding its use of sustainable aviation fuel (SAF). The company recently signed agreements to secure over 20 million gallons of neat SAF across five U.S. airports through 2027. FedEx aims to source 30% of its jet fuel from blended alternative sources by 2030. Amazon is also expanding its electric vehicle fleet, with plans to deploy 100,000 Rivian electric vans by 2030 and achieve net-zero emissions by 2040.

Retail sentiment around FedEx shifted to ‘neutral’ from ‘bearish,’ while Amazon’s sentiment improved to ‘bullish’ from ‘neutral.’ So far this year, FDX stock has surged 24%, while AMZN stock has gained 8%. Investors will be watching whether the transition to electric vehicles helps reduce fuel costs and improve profit margins for logistics companies.