We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tesla Stock Sinks After a Big Q1 Delivery Miss: ETFs in Focus
Read MoreHide Full Article
Tesla Inc. (TSLA - Free Report) disappointed investors with its first year-over-year drop in quarterly deliveries since 2020. Global deliveries slumped to the lowest level in nearly two years on the back of worsening demand for electric vehicles (EVs), sparking concerns about the company’s growth prospects this year.
Shares of Tesla fell nearly 5% on the big delivery miss, adding to trouble for the company’s stock price. Tesla has already been the worst-performing S&P 500 stock of the first quarter of 2024, having plunged about 29%. This marks the carmaker’s worst quarterly performance since the fourth quarter of 2022.
Given this, ETFs having a substantial allocation to this luxury carmaker have been in focus. These are Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) .
The leading electric carmaker delivered 386,810 cars (369,783 Model 3 and Y, and 17,027 Model S and X) worldwide in the first quarter, down 8.5% year over year and below the estimate of 457,000 as compiled by FactSet. The electric carmaker produced a record 433,371 vehicles (412,376 Model 3 and Y, and 20,995 Model S and X) during the quarter, down 1.7% from the year-ago quarter.
The decline was due to “the early phase of the production ramp-up” of its updated Model 3 at its Fremont factory, and plant shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin, which led to a weeklong production halt in its German factory.
Additionally, the EV manufacturer is facing increased competition in the EV space, especially from China-based competitor, BYD Auto. Notably, Tesla lost the title of the world’s best-selling EV maker to BYD in the fourth quarter of 2023.
ETFs in Focus
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 53 securities in its basket, Tesla takes the second spot with 12.9% assets (read: ETFs in Focus With Fed Rate Cuts in the Cards).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with an AUM of $20 billion and an average daily volume of around 5 million shares. It charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy), with a Medium risk outlook.
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report)
Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology. It employs a call option overlay to seek boosts in performance during extreme moves up in Tesla, while holding a tech index for diversification and put options as a hedge.
Simplify Volt Robocar Disruption and Tech ETF charges investors 0.95% in annual fees. It has accumulated $3.8 million in its asset base.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 306 stocks in its basket. Of these, Tesla occupies the second position with a 10.6% allocation. Broadline retail takes the largest share at 25%, and automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, whereas volume is moderate at nearly 66,000 shares a day. The product has managed about $6 billion in its asset base and carries a Zacks ETF Rank #1, with a Medium risk outlook.
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of products or services, and technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials, and transportation. This approach results in a basket of 35 stocks, with Tesla occupying the top spot with a 10.1% share.
ARK Autonomous Technology & Robotics ETF has accumulated $883.2 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 128,000 shares a day on average.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 290 stocks in its basket. Of these, TSLA takes the second spot with a 10.7% share. Broadline retail, hotels, restaurants & leisure, and specialty retail make up the top three sector holdings (read: Consumer Discretionary ETF Hits New 52-Week High).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base while trading in a good volume of around 81,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tesla Stock Sinks After a Big Q1 Delivery Miss: ETFs in Focus
Tesla Inc. (TSLA - Free Report) disappointed investors with its first year-over-year drop in quarterly deliveries since 2020. Global deliveries slumped to the lowest level in nearly two years on the back of worsening demand for electric vehicles (EVs), sparking concerns about the company’s growth prospects this year.
Shares of Tesla fell nearly 5% on the big delivery miss, adding to trouble for the company’s stock price. Tesla has already been the worst-performing S&P 500 stock of the first quarter of 2024, having plunged about 29%. This marks the carmaker’s worst quarterly performance since the fourth quarter of 2022.
Given this, ETFs having a substantial allocation to this luxury carmaker have been in focus. These are Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) .
The leading electric carmaker delivered 386,810 cars (369,783 Model 3 and Y, and 17,027 Model S and X) worldwide in the first quarter, down 8.5% year over year and below the estimate of 457,000 as compiled by FactSet. The electric carmaker produced a record 433,371 vehicles (412,376 Model 3 and Y, and 20,995 Model S and X) during the quarter, down 1.7% from the year-ago quarter.
The decline was due to “the early phase of the production ramp-up” of its updated Model 3 at its Fremont factory, and plant shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin, which led to a weeklong production halt in its German factory.
Additionally, the EV manufacturer is facing increased competition in the EV space, especially from China-based competitor, BYD Auto. Notably, Tesla lost the title of the world’s best-selling EV maker to BYD in the fourth quarter of 2023.
ETFs in Focus
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 53 securities in its basket, Tesla takes the second spot with 12.9% assets (read: ETFs in Focus With Fed Rate Cuts in the Cards).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with an AUM of $20 billion and an average daily volume of around 5 million shares. It charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy), with a Medium risk outlook.
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report)
Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology. It employs a call option overlay to seek boosts in performance during extreme moves up in Tesla, while holding a tech index for diversification and put options as a hedge.
Simplify Volt Robocar Disruption and Tech ETF charges investors 0.95% in annual fees. It has accumulated $3.8 million in its asset base.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 306 stocks in its basket. Of these, Tesla occupies the second position with a 10.6% allocation. Broadline retail takes the largest share at 25%, and automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, whereas volume is moderate at nearly 66,000 shares a day. The product has managed about $6 billion in its asset base and carries a Zacks ETF Rank #1, with a Medium risk outlook.
ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report)
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of products or services, and technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials, and transportation. This approach results in a basket of 35 stocks, with Tesla occupying the top spot with a 10.1% share.
ARK Autonomous Technology & Robotics ETF has accumulated $883.2 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 128,000 shares a day on average.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 290 stocks in its basket. Of these, TSLA takes the second spot with a 10.7% share. Broadline retail, hotels, restaurants & leisure, and specialty retail make up the top three sector holdings (read: Consumer Discretionary ETF Hits New 52-Week High).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base while trading in a good volume of around 81,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 (Buy), with a Medium risk outlook.