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Tesla Inc. (TSLA - Free Report) announced a record number of deliveries for the second quarter of 2023. The figures exceed expectations and signal its growing dominance in the electric vehicle market as the company continues to expand its production and sales globally.
This has put ETFs having a substantial allocation to this luxury carmaker like MeetKevin Pricing Power ETF (PP - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus for this week.
The leading electric carmaker delivered a record 466,140 (446,915 Model 3 and Y and 19,225 Model S and X) cars worldwide in the second quarter. This is up 83% from the year-ago quarter and 10% from the prior quarter. The electric carmaker produced a record 479,700 (460,211 Model 3 and Y, and 19,489 Model S and X) vehicles during the quarter.
The record-breaking numbers were driven by the Model 3 and Model Y, which together accounted for approximately 96% of the total deliveries this quarter. Tesla's sales and deliveries have also been bolstered by the recovery of Model S and Model X since their product refresh two years ago. With this, Tesla delivered a total of 888,000 vehicles during the first half of 2023 and is on track to achieve its guidance of 1.8 million vehicles for 2023.
Several factors contributed to this impressive performance. Tesla offered some discounts and incentives to boost the sales of its vehicles in the United States during the quarter, including on its Model 3 entry-level sedan and, more recently, its older Model X SUV and Model S flagship sedan. Additionally, all trims of the Model 3 sedan qualified for the full $7,500 federal tax credit under the Inflation Reduction Act in the United States during the second quarter bolstered sales (read: Single-Stock Tesla ETF Racing to Hit Billion-Dollar AUM).
The solid delivery numbers were also supported by the expansion of its manufacturing capacity. Tesla ramped up production at its vehicle assembly plant in Austin, TX, contributing to a total production of 479,700 units for the second quarter. Tesla also operates vehicle assembly plants in Fremont, CA, and overseas in Shanghai and Brandenburg, Germany, with additional plans to build a new factory near Monterrey, Mexico, and potential investment in India.
In the future, Tesla is expected to introduce a partly revamped version of the Model 3 in North America and deliver its first Cybertruck pickups in 2023. The company is also developing a new kind of drive unit and other technology aimed at delivering a more affordable electric vehicle.
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies that, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 18 stocks, with Tesla occupying the top position at 24.5%.
MeetKevin Pricing Power ETF newly debuted in the space at the end of November and has accumulated $38.4 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 33,000 shares a day on average.
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 19.4% of assets. (read: 5 Top-Performing Sector ETFs of Q2).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $17 billion and an average daily volume of around 4.5 million shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) 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 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 35 stocks, with Tesla occupying the top spot with a 14.5% share.
ARK Autonomous Technology & Robotics ETF has accumulated $1.1 billion in its asset base and charges 75 bps in fees per year. It trades in a volume of 117,000 shares a day on average.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 309 stocks in its basket. Of these, Tesla occupies the second position with a 13.4% allocation. Broadline retail takes the largest share at 25.7%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 53,000 shares a day. The product has managed about $4.7 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 302 stocks in its basket. Of these, TSLA takes the second spot with a 12% share (read: 4 Sector ETFs Upgraded to Buy).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 56,000 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.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Tesla Sets New Q2 Delivery Record: ETFs to Buy
Tesla Inc. (TSLA - Free Report) announced a record number of deliveries for the second quarter of 2023. The figures exceed expectations and signal its growing dominance in the electric vehicle market as the company continues to expand its production and sales globally.
This has put ETFs having a substantial allocation to this luxury carmaker like MeetKevin Pricing Power ETF (PP - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus for this week.
The leading electric carmaker delivered a record 466,140 (446,915 Model 3 and Y and 19,225 Model S and X) cars worldwide in the second quarter. This is up 83% from the year-ago quarter and 10% from the prior quarter. The electric carmaker produced a record 479,700 (460,211 Model 3 and Y, and 19,489 Model S and X) vehicles during the quarter.
The record-breaking numbers were driven by the Model 3 and Model Y, which together accounted for approximately 96% of the total deliveries this quarter. Tesla's sales and deliveries have also been bolstered by the recovery of Model S and Model X since their product refresh two years ago. With this, Tesla delivered a total of 888,000 vehicles during the first half of 2023 and is on track to achieve its guidance of 1.8 million vehicles for 2023.
Several factors contributed to this impressive performance. Tesla offered some discounts and incentives to boost the sales of its vehicles in the United States during the quarter, including on its Model 3 entry-level sedan and, more recently, its older Model X SUV and Model S flagship sedan. Additionally, all trims of the Model 3 sedan qualified for the full $7,500 federal tax credit under the Inflation Reduction Act in the United States during the second quarter bolstered sales (read: Single-Stock Tesla ETF Racing to Hit Billion-Dollar AUM).
The solid delivery numbers were also supported by the expansion of its manufacturing capacity. Tesla ramped up production at its vehicle assembly plant in Austin, TX, contributing to a total production of 479,700 units for the second quarter. Tesla also operates vehicle assembly plants in Fremont, CA, and overseas in Shanghai and Brandenburg, Germany, with additional plans to build a new factory near Monterrey, Mexico, and potential investment in India.
In the future, Tesla is expected to introduce a partly revamped version of the Model 3 in North America and deliver its first Cybertruck pickups in 2023. The company is also developing a new kind of drive unit and other technology aimed at delivering a more affordable electric vehicle.
ETFs in Focus
MeetKevin Pricing Power ETF (PP - Free Report)
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies that, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 18 stocks, with Tesla occupying the top position at 24.5%.
MeetKevin Pricing Power ETF newly debuted in the space at the end of November and has accumulated $38.4 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 33,000 shares a day on average.
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 19.4% of assets. (read: 5 Top-Performing Sector ETFs of Q2).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $17 billion and an average daily volume of around 4.5 million shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) 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 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 35 stocks, with Tesla occupying the top spot with a 14.5% share.
ARK Autonomous Technology & Robotics ETF has accumulated $1.1 billion in its asset base and charges 75 bps in fees per year. It trades in a volume of 117,000 shares a day on average.
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 309 stocks in its basket. Of these, Tesla occupies the second position with a 13.4% allocation. Broadline retail takes the largest share at 25.7%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 53,000 shares a day. The product has managed about $4.7 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 302 stocks in its basket. Of these, TSLA takes the second spot with a 12% share (read: 4 Sector ETFs Upgraded to Buy).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 56,000 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.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.