FedEx orders 15 W56 vans, boosting Workhorse shares

FedEx has made a significant move towards its sustainability goals by placing an order for 15 W56 step vans from Workhorse Group. This decision aligns with FedEx's commitment to achieving global carbon neutrality by 2040, which involves a systematic replacement of its existing vehicle fleet with more environmentally friendly options. The W56 vans have demonstrated impressive fuel efficiency, achieving 31 miles per gallon equivalent (MPGe) during testing, far surpassing the national average of 7 miles per gallon for delivery trucks. The environmental impact of this purchase is noteworthy, as it is projected to help avoid approximately 607 metric tons of tailpipe emissions annually. This estimate is based on an average annual distance of 31,875 miles driven per vehicle. The transition to these electric vehicles not only supports FedEx's sustainability initiatives but also reflects a broader trend in the logistics industry towards greener practices. Rick Dauch, CEO of Workhorse, expressed enthusiasm about the partnership, highlighting the company's commitment to providing efficient and high-quality electric vehicle solutions. The order is seen as a validation of Workhorse's engineering capabilities and operational support, which are crucial for meeting the demands of large-scale logistics companies. As a result of this announcement, Workhorse shares experienced a notable increase, rising by 5.79% to 61 cents. This positive market reaction underscores investor confidence in the company's future prospects, particularly in light of the growing emphasis on electric vehicles in the transportation sector.