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.
Electric carmaker Tesla Motors (TSLA - Free Report) is scheduled to report second-quarter 2023 results on Jul 19 after market close. Let’s take a closer look at its fundamentals ahead of the earnings release.
Tesla stock has risen about 61% so far this year, outperforming the Zacks industry average growth of 50.4%. The outperformance is likely to continue, given that Tesla has a reasonable chance of beating estimates this quarter (see: all the Alternative Energy ETFs here).
This has put the ETFs having a substantial allocation to this luxury carmaker like Direxion Daily TSLA Bull 1.5X Shares (TSLL - Free Report) , MeetKevin Pricing Power ETF (PP - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , and Vanguard Consumer Discretionary ETF (VCR - Free Report) in focus ahead of Q2 earnings.
Earnings Whispers
Tesla has an Earnings ESP of +2.97% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The electric carmaker saw a positive earnings estimate revision of 3 cents over the past 30 days for the to-be-reported quarter. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The Zacks Consensus Estimate for the second quarter indicates substantial year-over-year earnings growth of 9.2% and revenue growth of 46.9%.
Further, the earnings track record of the company is robust. It delivered a four-quarter average earnings surprise of 11.71%.
Tesla has a top Growth Score of A but belongs to a top-ranked Zacks industry (in the top 14%). The Zacks Consensus Estimate for the average target price is $231.22, with nearly 32% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
New Q2 Deliveries Record
Earlier this month, Tesla reported record deliveries for the second quarter of 2023, signaling its growing dominance in the electric vehicle market as the company continues to expand its production and sales globally (read: Tesla Sets New Q2 Delivery Record: ETFs to Buy).
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, 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.
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.
Tesla Reveals New Models
After two years of delay, the carmaker rolled out its first electric pickup -- a slick-looking silver Cybertruck -- at its huge plant near Austin, TX. Tesla will be making three models of the Cybertruck, a vehicle that can accelerate from zero to 60 miles per hour (100 kilometers per hour) in less than three seconds. The basic model will cost $39,900 (roughly Rs. 32,03,700) and offer a 250-mile range between charges. The top-line truck will have twice that range and sell for $69,900 (roughly Rs. 57,41,900).
The pickup is expected to bring the automaker into another profitable EV segment in the United States.
With AUM of $984.7 million, Direxion Daily TSLA Bull 1.5X Shares is just an 11-month-old ETF and is by far the largest U.S.-listed single-stock ETF on the market today. TSLL offers 1.5 times (150%) the daily percentage change of the common stock of Tesla, charging 95 bps in annual fees. It trades in an average daily volume of 13 million shares (read: Guide to Single-Stock ETF Investing).
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in 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 23.3%.
MeetKevin Pricing Power ETF debuted in the space at the end of November and has accumulated $42.3 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 34,000 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 20.3% of the assets (read: 5 ETFs to Ride the Surge in Amazon Prime Day Sales).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $17.3 billion and an average daily volume of around 4.7 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 37 stocks, with Tesla occupying the top spot with a 15% 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 128,000 shares a day on average.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 308 stocks in its basket. Of these, Tesla occupies the second position with a 15.1% allocation. Broadline retail takes the largest share at 25%, 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 68,000 shares a day. The product has managed about $5 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Q2 Earnings Could Drive Tesla ETFs Higher
Electric carmaker Tesla Motors (TSLA - Free Report) is scheduled to report second-quarter 2023 results on Jul 19 after market close. Let’s take a closer look at its fundamentals ahead of the earnings release.
Tesla stock has risen about 61% so far this year, outperforming the Zacks industry average growth of 50.4%. The outperformance is likely to continue, given that Tesla has a reasonable chance of beating estimates this quarter (see: all the Alternative Energy ETFs here).
This has put the ETFs having a substantial allocation to this luxury carmaker like Direxion Daily TSLA Bull 1.5X Shares (TSLL - Free Report) , MeetKevin Pricing Power ETF (PP - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , and Vanguard Consumer Discretionary ETF (VCR - Free Report) in focus ahead of Q2 earnings.
Earnings Whispers
Tesla has an Earnings ESP of +2.97% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The electric carmaker saw a positive earnings estimate revision of 3 cents over the past 30 days for the to-be-reported quarter. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The Zacks Consensus Estimate for the second quarter indicates substantial year-over-year earnings growth of 9.2% and revenue growth of 46.9%.
Further, the earnings track record of the company is robust. It delivered a four-quarter average earnings surprise of 11.71%.
Tesla has a top Growth Score of A but belongs to a top-ranked Zacks industry (in the top 14%). The Zacks Consensus Estimate for the average target price is $231.22, with nearly 32% of the analysts giving a Strong Buy or a Buy rating ahead of the company’s earnings.
New Q2 Deliveries Record
Earlier this month, Tesla reported record deliveries for the second quarter of 2023, signaling its growing dominance in the electric vehicle market as the company continues to expand its production and sales globally (read: Tesla Sets New Q2 Delivery Record: ETFs to Buy).
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, 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.
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.
Tesla Reveals New Models
After two years of delay, the carmaker rolled out its first electric pickup -- a slick-looking silver Cybertruck -- at its huge plant near Austin, TX. Tesla will be making three models of the Cybertruck, a vehicle that can accelerate from zero to 60 miles per hour (100 kilometers per hour) in less than three seconds. The basic model will cost $39,900 (roughly Rs. 32,03,700) and offer a 250-mile range between charges. The top-line truck will have twice that range and sell for $69,900 (roughly Rs. 57,41,900).
The pickup is expected to bring the automaker into another profitable EV segment in the United States.
ETFs to Watch
Direxion Daily TSLA Bull 1.5X Shares (TSLL - Free Report)
With AUM of $984.7 million, Direxion Daily TSLA Bull 1.5X Shares is just an 11-month-old ETF and is by far the largest U.S.-listed single-stock ETF on the market today. TSLL offers 1.5 times (150%) the daily percentage change of the common stock of Tesla, charging 95 bps in annual fees. It trades in an average daily volume of 13 million shares (read: Guide to Single-Stock ETF Investing).
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 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 23.3%.
MeetKevin Pricing Power ETF debuted in the space at the end of November and has accumulated $42.3 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 34,000 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 20.3% of the assets (read: 5 ETFs to Ride the Surge in Amazon Prime Day Sales).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $17.3 billion and an average daily volume of around 4.7 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 37 stocks, with Tesla occupying the top spot with a 15% 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 128,000 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 308 stocks in its basket. Of these, Tesla occupies the second position with a 15.1% allocation. Broadline retail takes the largest share at 25%, 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 68,000 shares a day. The product has managed about $5 billion in its asset base and carries a Zacks ETF Rank #1 with a Medium risk outlook.