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Manufacturing Advancements to Boost Tesla: ETFs in Focus
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According to Reuters, Tesla (TSLA - Free Report) has combined several innovations to make a significant technological advancement that could revolutionize the manufacturing of electric vehicles (EVs) and help Elon Musk reach his goal of halving production costs.
Tesla developed the "gigacasting" method, using massive presses with up to 9,000 tons of pressure, to shape its Model Y's front and rear structures. This innovation dramatically reduced production costs and gave TSLA a competitive edge.To stay ahead, the company is close to a breakthrough, planning to cast an entire EV underbody as a single piece, replacing approximately 400 components typically found in a traditional car.
How Will the Breakthrough Benefit Tesla?
Two of the sources disclosed to Reuters that Tesla's previously undisclosed innovative design and manufacturing techniques could allow the company to develop a car from the ground up in as little as 18-24 months, a significant improvement from the three to four years typically required by most competitors, disrupting the conventional methods of car design and manufacturing.
Not only will the new manufacturing process result in significant cost savings for the EV manufacturer but also increase its capacity to manufacture and deliver a greater number of EVs than its counterparts.
Tesla Remains in Focus
Tesla’s Supercomputer, Dojo, is forecast to fuel the surge in the EV maker’s market capitalization by a notable 76%, boosting its valuation by nearly $600 billion. Also, Morgan Stanley upgraded its assessment of Tesla's stock from "equal-weight" to "overweight" and designated it as its "top pick,” estimating the world’s largest EV manufacturer to hit the target of $400, surging nearly 60% from its current price levels within 12-18 months (Read: Tesla's Supercomputer Dojo Propels These ETFs).
ETFs in Focus
Investors with a positive outlook on Tesla’s growth fueled by AI optimism, can consider investing in the following ETFs that offer exposure to the electric car manufacturer.
Meet Kevin Pricing Power ETF employs an active strategy, investing primarily in the U.S.-listed equity securities of innovative companies. Having gathered an asset base of $39.5 million and charging an annual fee of 0.77%, PP has a basket of 17 securities.
Meet Kevin Pricing Power ETF has an exposure of 27.14% in Tesla, with the EV-maker being the top allocation of the fund. PP has 86.27% of its assets parked in large-cap securities, reducing the volatility surrounding the fund.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund seeks to track the Consumer Discretionary Select Sector Index with a basket of 54 securities. The fund has amassed an asset base of $18.67 billion and charges an annual fee of 0.10%.
Consumer Discretionary Select Sector SPDR Fund has an exposure of 19.66% in Tesla and a Zacks ETF Rank #1 (Strong Buy). The fund invests 96.50% of its assets in large-cap securities, reducing the volatility surrounding the fund.
Vanguard Consumer Discretionary ETF seeks to track the MSCI US Investable Market Consumer Discretionary 25/50 Index, with a basket of 309 securities. The fund has gathered an asset base of $5.16 billion and charges an annual fee of 0.10%.
Vanguard Consumer Discretionary ETF has an exposure of 14.96% in Tesla and has a Zacks ETF Rank #1. VCR invests 82.52% of its assets in large-cap securities, reducing the volatility surrounding the fund.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF seeks to track the MSCI USA IMI Consumer Discretionary Index by investing at least 80% of assets in securities included in the index. The fund has a basket of 298 securities and amassed an asset base of $1.25 billion. FDIS charges an annual fee of 0.08%.
Fidelity MSCI Consumer Discretionary Index ETF has an exposure of 15.52% in Tesla and a Zacks ETF Rank #2 (Buy). FDIS invests 83.14% of its assets in large-cap securities, reducing the volatility surrounding the fund.
ARK Autonomous Technology & Robotics ETF employs an active strategy with a basket of 37 securities. The fund has gathered an asset base of $1.06 billion and charges an annual fee of 0.75%.
ARK Autonomous Technology & Robotics ETF has an exposure of 14.46% in Tesla, with the EV-maker being the top allocation of the fund.
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Manufacturing Advancements to Boost Tesla: ETFs in Focus
According to Reuters, Tesla (TSLA - Free Report) has combined several innovations to make a significant technological advancement that could revolutionize the manufacturing of electric vehicles (EVs) and help Elon Musk reach his goal of halving production costs.
Tesla developed the "gigacasting" method, using massive presses with up to 9,000 tons of pressure, to shape its Model Y's front and rear structures. This innovation dramatically reduced production costs and gave TSLA a competitive edge.To stay ahead, the company is close to a breakthrough, planning to cast an entire EV underbody as a single piece, replacing approximately 400 components typically found in a traditional car.
How Will the Breakthrough Benefit Tesla?
Two of the sources disclosed to Reuters that Tesla's previously undisclosed innovative design and manufacturing techniques could allow the company to develop a car from the ground up in as little as 18-24 months, a significant improvement from the three to four years typically required by most competitors, disrupting the conventional methods of car design and manufacturing.
Not only will the new manufacturing process result in significant cost savings for the EV manufacturer but also increase its capacity to manufacture and deliver a greater number of EVs than its counterparts.
Tesla Remains in Focus
Tesla’s Supercomputer, Dojo, is forecast to fuel the surge in the EV maker’s market capitalization by a notable 76%, boosting its valuation by nearly $600 billion. Also, Morgan Stanley upgraded its assessment of Tesla's stock from "equal-weight" to "overweight" and designated it as its "top pick,” estimating the world’s largest EV manufacturer to hit the target of $400, surging nearly 60% from its current price levels within 12-18 months (Read: Tesla's Supercomputer Dojo Propels These ETFs).
ETFs in Focus
Investors with a positive outlook on Tesla’s growth fueled by AI optimism, can consider investing in the following ETFs that offer exposure to the electric car manufacturer.
Meet Kevin Pricing Power ETF (PP - Free Report)
Meet Kevin Pricing Power ETF employs an active strategy, investing primarily in the U.S.-listed equity securities of innovative companies. Having gathered an asset base of $39.5 million and charging an annual fee of 0.77%, PP has a basket of 17 securities.
Meet Kevin Pricing Power ETF has an exposure of 27.14% in Tesla, with the EV-maker being the top allocation of the fund. PP has 86.27% of its assets parked in large-cap securities, reducing the volatility surrounding the fund.
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
Consumer Discretionary Select Sector SPDR Fund seeks to track the Consumer Discretionary Select Sector Index with a basket of 54 securities. The fund has amassed an asset base of $18.67 billion and charges an annual fee of 0.10%.
Consumer Discretionary Select Sector SPDR Fund has an exposure of 19.66% in Tesla and a Zacks ETF Rank #1 (Strong Buy). The fund invests 96.50% of its assets in large-cap securities, reducing the volatility surrounding the fund.
Vanguard Consumer Discretionary ETF (VCR - Free Report)
Vanguard Consumer Discretionary ETF seeks to track the MSCI US Investable Market Consumer Discretionary 25/50 Index, with a basket of 309 securities. The fund has gathered an asset base of $5.16 billion and charges an annual fee of 0.10%.
Vanguard Consumer Discretionary ETF has an exposure of 14.96% in Tesla and has a Zacks ETF Rank #1. VCR invests 82.52% of its assets in large-cap securities, reducing the volatility surrounding the fund.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF seeks to track the MSCI USA IMI Consumer Discretionary Index by investing at least 80% of assets in securities included in the index. The fund has a basket of 298 securities and amassed an asset base of $1.25 billion. FDIS charges an annual fee of 0.08%.
Fidelity MSCI Consumer Discretionary Index ETF has an exposure of 15.52% in Tesla and a Zacks ETF Rank #2 (Buy). FDIS invests 83.14% of its assets in large-cap securities, reducing the volatility surrounding the fund.
ARKAutonomous Technology & Robotics ETF (ARKQ - Free Report)
ARK Autonomous Technology & Robotics ETF employs an active strategy with a basket of 37 securities. The fund has gathered an asset base of $1.06 billion and charges an annual fee of 0.75%.
ARK Autonomous Technology & Robotics ETF has an exposure of 14.46% in Tesla, with the EV-maker being the top allocation of the fund.