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Tesla Motors (TSLA - Free Report) reported another quarter of record deliveries, underscoring its strong growth amid the global automotive semiconductor shortage that is roiling car production across the globe.
The company delivered a record 241,300 (232,025 Model 3 and Y, and 9,275 Model S and X) vehicles. Deliveries were up 73% from the year-ago quarter and 20% from the prior quarter. This marked the sixth consecutive quarter-over-quarter gain. The electric carmaker produced 237,823 (228,882 Model 3 and Y, and 8,941 Model S and X) vehicles during the quarter.
Given that demand in China is still recovering and EV competition is coming from all angles, Tesla’s ability to navigate these challenges this quarter has been very impressive. Rising exports to Europe and the introduction of a cheaper Model Y helped boost Tesla's production (read: Top-Ranked ETFs That Are Up At Least 25% So Far This Year).
With this, Tesla has sold around 627,300 vehicles so far this year and is on track to soundly beat last year's total of 499,550. An analyst at Wedbush said that the pace of EV deliveries in the United States and China has been robust in the last four-six weeks with an eye-popping growth trajectory heading into 4Q and 2022.
Tesla has been outperforming the market, having gained 18% over the past three months. It has a Zacks Rank #1 (Strong Buy) and Growth Score of A. It also belongs to a top-ranked Zacks industry (in the top 38%). All these suggest a good time for the stock in the coming months, making the stock a compelling pick for investors heading into Q4.
ETFs in Focus
The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted seven of them below.
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report)
This is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology and then enhancing the concentrated exposure with options. It is heavily exposed to the Tesla stock and Tesla call options at 25% share. The fund seeks to boost its performance during extreme moves in Tesla, charging investors 0.95% in annual fees. It has accumulated $1.8 million in its asset base while trades in an average daily volume of 1,000 shares (read: 2 Reasons to Buy EV ETFs Now).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $20 billion and an average daily volume of around 4.3 million shares. Holding 63 securities in its basket, Tesla takes the second spot with 15.9% of assets. The fund charges 12 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 46 stocks, with TSLA occupying the top spot with 11.7% share. The product has accumulated $2.5 billion in its asset base and charges 75 bps in fees per year. It trades in volume of 319,000 shares a day on average.
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 48 stocks in its basket with Tesla occupying the top position at 10.2%. The ETF has amassed $5 billion in its asset base and charges 79 bps in annual fees. It trades in an average daily volume of 709,000 shares (read: Here's Why Internet ETFs Are Sizzling With Opportunities).
This is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 48 securities in its basket with Tesla occupying the top position, accounting for 10.1% share. The product has gathered $19.3 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 5.3 million shares per day on average.
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $73.3 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 36,000 shares and has a Zacks ETF Rank #3.
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ETFs to Buy on Tesla Record Q3 Delivery Numbers
Tesla Motors (TSLA - Free Report) reported another quarter of record deliveries, underscoring its strong growth amid the global automotive semiconductor shortage that is roiling car production across the globe.
The company delivered a record 241,300 (232,025 Model 3 and Y, and 9,275 Model S and X) vehicles. Deliveries were up 73% from the year-ago quarter and 20% from the prior quarter. This marked the sixth consecutive quarter-over-quarter gain. The electric carmaker produced 237,823 (228,882 Model 3 and Y, and 8,941 Model S and X) vehicles during the quarter.
Given that demand in China is still recovering and EV competition is coming from all angles, Tesla’s ability to navigate these challenges this quarter has been very impressive. Rising exports to Europe and the introduction of a cheaper Model Y helped boost Tesla's production (read: Top-Ranked ETFs That Are Up At Least 25% So Far This Year).
With this, Tesla has sold around 627,300 vehicles so far this year and is on track to soundly beat last year's total of 499,550. An analyst at Wedbush said that the pace of EV deliveries in the United States and China has been robust in the last four-six weeks with an eye-popping growth trajectory heading into 4Q and 2022.
Tesla has been outperforming the market, having gained 18% over the past three months. It has a Zacks Rank #1 (Strong Buy) and Growth Score of A. It also belongs to a top-ranked Zacks industry (in the top 38%). All these suggest a good time for the stock in the coming months, making the stock a compelling pick for investors heading into Q4.
ETFs in Focus
The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted seven of them below.
Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report)
This is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology and then enhancing the concentrated exposure with options. It is heavily exposed to the Tesla stock and Tesla call options at 25% share. The fund seeks to boost its performance during extreme moves in Tesla, charging investors 0.95% in annual fees. It has accumulated $1.8 million in its asset base while trades in an average daily volume of 1,000 shares (read: 2 Reasons to Buy EV ETFs Now).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $20 billion and an average daily volume of around 4.3 million shares. Holding 63 securities in its basket, Tesla takes the second spot with 15.9% of assets. The fund charges 12 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
ARK Industrial Innovation ETF (ARKQ - Free Report)
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 46 stocks, with TSLA occupying the top spot with 11.7% share. The product has accumulated $2.5 billion in its asset base and charges 75 bps in fees per year. It trades in volume of 319,000 shares a day on average.
ARK Next Generation Internet ETF (ARKW - Free Report)
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 48 stocks in its basket with Tesla occupying the top position at 10.2%. The ETF has amassed $5 billion in its asset base and charges 79 bps in annual fees. It trades in an average daily volume of 709,000 shares (read: Here's Why Internet ETFs Are Sizzling With Opportunities).
ARK Innovation ETF (ARKK - Free Report)
This is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 48 securities in its basket with Tesla occupying the top position, accounting for 10.1% share. The product has gathered $19.3 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 5.3 million shares per day on average.
MicroSectors FANG+ ETN (FNGS - Free Report)
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $73.3 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 36,000 shares and has a Zacks ETF Rank #3.