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Tesla Motors (TSLA - Free Report) reported weaker-than-expected Q3 results, missing estimates on both fronts. The electric automaker posted its lowest profit in two years as it slashed prices to boost demand in the face of rising interest rates.
Shares of Tesla declined about 5% in after-market hours, following the earnings announcement and 5% in the pre-market trading session at the time of writing. 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) , Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus.
Q3 Earnings in Focus
Adjusted earnings per share came in at 66 cents, missing the Zacks Consensus Estimate of 73 cents and declining from the year-ago earnings of $1.05. Revenues rose 9.1% year over year to $23.35 billion and fell shy of the Zacks Consensus Estimate of $24.38 billion.
Earlier this month, Tesla reported weaker-than-expected vehicle deliveries for the third quarter of 2023 due to some planned factory shutdowns. The leading electric carmaker delivered 435,059 (419,074 Model 3 and Y and 15,985 Model S and X) cars worldwide in the third quarter, up 26.5% from the year-ago quarter but down 6.7% from the prior quarter. The electric carmaker produced 430,488 (416,800 Model 3 and Y, and 13,688 Model S and X) vehicles during the quarter.
Tesla is on track to achieve its guidance of 1.8 million vehicles for 2023. This would require the company to deliver around 477,000 new vehicles in the final three months of the year. The company expects to begin delivery of the long-delayed Cybertruck pickup by the end of this year. Soon after the earnings report, Musk tweeted that the first deliveries of the Cybertruck are now scheduled for Nov 30.
With AUM of $1.1 billion, Direxion Daily TSLA Bull 1.5X Shares is just more than a year-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 16 stocks, with Tesla occupying the top position at 26.4%.
MeetKevin Pricing Power ETF debuted in the space at the end of November last year and has accumulated $38.7 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 20,000 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 19.5% of the assets (read: 5 Favorite Sectors This Earnings Season and Their ETFs).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $16.7 billion and an average daily volume of around 5 million shares. It charges 10 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 $4.1 million in its asset base while trading in an average daily volume of 2,000 shares.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 300 stocks in its basket. Of these, TSLA takes the second spot with a 15.4% share. Broadline Retail, Hotels, Restaurants & Leisure and Specialty Retail make up for the top three sector holdings.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 72,000 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.
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Tesla Posts Weak Q3 Earnings: ETFs in Focus
Tesla Motors (TSLA - Free Report) reported weaker-than-expected Q3 results, missing estimates on both fronts. The electric automaker posted its lowest profit in two years as it slashed prices to boost demand in the face of rising interest rates.
Shares of Tesla declined about 5% in after-market hours, following the earnings announcement and 5% in the pre-market trading session at the time of writing. 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) , Simplify Volt Robocar Disruption and Tech ETF (VCAR - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) in focus.
Q3 Earnings in Focus
Adjusted earnings per share came in at 66 cents, missing the Zacks Consensus Estimate of 73 cents and declining from the year-ago earnings of $1.05. Revenues rose 9.1% year over year to $23.35 billion and fell shy of the Zacks Consensus Estimate of $24.38 billion.
Earlier this month, Tesla reported weaker-than-expected vehicle deliveries for the third quarter of 2023 due to some planned factory shutdowns. The leading electric carmaker delivered 435,059 (419,074 Model 3 and Y and 15,985 Model S and X) cars worldwide in the third quarter, up 26.5% from the year-ago quarter but down 6.7% from the prior quarter. The electric carmaker produced 430,488 (416,800 Model 3 and Y, and 13,688 Model S and X) vehicles during the quarter.
Tesla is on track to achieve its guidance of 1.8 million vehicles for 2023. This would require the company to deliver around 477,000 new vehicles in the final three months of the year. The company expects to begin delivery of the long-delayed Cybertruck pickup by the end of this year. Soon after the earnings report, Musk tweeted that the first deliveries of the Cybertruck are now scheduled for Nov 30.
ETFs in Focus
Direxion Daily TSLA Bull 1.5X Shares (TSLL - Free Report)
With AUM of $1.1 billion, Direxion Daily TSLA Bull 1.5X Shares is just more than a year-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 16 stocks, with Tesla occupying the top position at 26.4%.
MeetKevin Pricing Power ETF debuted in the space at the end of November last year and has accumulated $38.7 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 20,000 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 19.5% of the assets (read: 5 Favorite Sectors This Earnings Season and Their ETFs).
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $16.7 billion and an average daily volume of around 5 million shares. It charges 10 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 $4.1 million in its asset base while trading in an average daily volume of 2,000 shares.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 300 stocks in its basket. Of these, TSLA takes the second spot with a 15.4% share. Broadline Retail, Hotels, Restaurants & Leisure and Specialty Retail make up for the top three sector holdings.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.2 billion in its asset base while trading in a good volume of around 72,000 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.