FedEx Corp. is making a $300 million bet on its future fleet with plans to replace a significant number of its diesel vehicles with brand-new, all-electric trucks.

Harbinger Motors, a U.S. startup manufacturer of e-mobility technologies, confirmed this month that it received a binding order for 2,000 of its all-electric trucks from logistics and package delivery giant FedEx. California-based Harbinger values the deal at more than $300 million and said it marks a historic milestone relating to binding orders for electric medium- or heavy-duty trucks in the U.S.

The vehicles, planned for delivery by the end of 2027, highlight FedEx's electrification strategy to deploy EVs across FedEx pickup and delivery operations in the United States and Canada. According to Harbinger, this EV shift of 2,000 vehicles into a single fleet operating in North America can generate roughly $40 million in annual fuel savings.

Over a 20-year vehicle service life period for a class 5 and 6 medium-duty trucks, Harbinger estimates those long-term savings at $800 million, with each electric truck reducing fuel costs by an average of $20,000 annually compared to the conventional diesel vehicle it replaces.

“FedEx is demonstrating that the business case for incorporating electric vehicles into real-world fleet operations at scale makes sense,” said John Harris, co-founder and CEO of Harbinger, in a statement. “Our previous work together gave FedEx firsthand experience with the performance and economic advantages Harbinger vehicles can deliver.”

Previously, FedEx co-led a $160 million Series C equity round supporting Harbinger’s EV operations, which was founded in 2021. FedEx placed an initial order for 53 Harbinger EVs that were deployed at the end of 2025.

Building on that momentum, Harbinger headed into this year with an order book of 4,690 vehicle orders from other customers worth roughly $500 million. That early-year achievement followed extensive vehicle testing in Arizona and New Zealand, Fleet Owner reported.

Beyond simple cost-cutting, FedEx views this current expansion as a major fleet modernization effort to support future carbon-neutral operations.

“The transportation industry is undergoing a fundamental transformation, and electrification is set to play a pivotal role in the future of commercial fleets,” said Vinay D'Souza, senior vice president of global assets and infrastructure at FedEx.

According to Harbinger projections, replacing 2,000 diesel trucks with its electric alternatives will avoid more than 1.7 million tons of CO2 emissions over their projected operating lifespan. These environmental estimates combine the company's proprietary assumptions with the U.S. Department of Energy’s fuel efficiency baseline data.

“This order with Harbinger helps us advance that transition, allowing us to build a more modern, efficient, and intelligent fleet that meets the evolving needs of our customers, our team members, and our global operations,” D'Souza added.