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FedEx, Chanje Plan Development of Charging Infrastructure

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FedEx Corporation (FDX - Free Report) intends to electrify 42 FedEx stations in California under an agreement with Chanje Energy Inc. The move marks one of the largest deployments of integrated charging infrastructure by a single commercial fleet until now. Earlier in January, FedEx began construction on the electronic DC (direct current) charging stations and recently announced the next phase of its electric vehicle rollout.

In November 2018, the company announced plans to expand its fleet by adding 1,000 Chanje V8100 electric delivery vehicles of which, 900 will be leased from Ryder System (R - Free Report) and the remaining will be bought from Chanje Energy. The additional fleet will be utilized by FedEx Express for commercial and residential pick-up and delivery services across California.

The vehicles and the DC charging infrastructure will enable FedEx to improve operational efficiency, simultaneously supporting its “Reduce, Replace, Revolutionize” approach to sustainability. Notably, the company took the all-electric vehicles route to delivery services since 2009 in order to cut down global emissions and improve fuel efficiency. To this end, it targets 50% improvement in FedEx Express vehicle fuel efficiency by 2025 from the 2005 baseline.


Chanje is expected to begin production of the electric vehicles later this year. Ryder is expected to provide support services for these vehicles, which are manufactured by FDG Electric Vehicles Limited in Hangzhou, China. The DC charging system, designed specifically for FedEx, is likely to help charge more than 1,000 electric vehicles daily.

Zacks Rank & Key Picks

FedEx carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) and Azul S.A. (AZUL - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

While GATX's earnings outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%,, Azul’s earnings surpassed estimates in three (miss in one) of the last four quarters, the average beat being 198.7%.

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