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ETFs to Ride on Tesla's Record Q4 Delivery Numbers
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Tesla Inc. (TSLA - Free Report) reported record deliveries for the fourth quarter and exceeded analysts’ estimates. The electric carmaker also met its full-year delivery target. This reflects a continuation of Tesla's strong growth trajectory in the electric vehicle market.
Given this, investors should bet on ETFs having a substantial allocation to this luxury carmaker. These are 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) .
The leading electric carmaker delivered a record 484,507 (461,538 Model 3 and Y and 22,969 Model S and X) cars worldwide in the fourth quarter, beating Street estimates of 483,173. The electric carmaker produced a record 494,989 (476,777 Model 3 and Y, and 18,212 Model S and X) vehicles during the quarter.
Tesla's achievement is notable, particularly given the challenges faced by the automotive industry, including high interest rates and increasing competition in the EV space (read: Should You Fear Slowing Momentum of EVs? ETFs in Focus).
The record-breaking numbers were driven by the introduction of the Cybertruck in the U.S. market in December. Tesla also implemented global price cuts in the fourth quarter, which is marked by a period of economic uncertainty, higher interest rates and shifting consumer sentiment.
For 2023, Tesla delivered 1.8 million vehicles worldwide in 2023, up 38% year over year and met its guidance. Production grew 35% year over year to 1.85 million. However, Tesla is behind the Chinese automaker BYD, which sold 3.02 million new energy vehicles in 2023, including 1.6 million battery-electric passenger cars and 1.4 million hybrid electric models.
Tesla stock has doubled in 2023, outpacing the S&P 500. It currently has a Zacks Rank #4 (Sell) but belongs to a top-ranked Zacks industry (in the top 35%). The stock boasts a Growth Score of B, indicating that it is primed for more growth.
With AUM of $1 billion, Direxion Daily TSLA Bull 1.5X Shares is by far the largest U.S.-listed single-stock ETF on the market today. It offers 1.5 times (150%) the daily percentage change of the common stock of Tesla, charging 95 bps in annual fees. TSLL trades in an average daily volume of 15 million shares (read: 5 Best-Performing Single-Stock ETFs of 2023).
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 24.8%.
MeetKevin Pricing Power ETF has accumulated $41.7 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 12,000 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 17.9% of the assets.
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 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 $3.8 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 14.2% share. Broadline Retail, Hotels, Restaurants & Leisure and Specialty Retail make up the top three sector holdings (read: 5 Sector ETFs That Beat the Market in 2023).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.4 billion in its asset base while trading in a good volume of around 106,000 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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ETFs to Ride on Tesla's Record Q4 Delivery Numbers
Tesla Inc. (TSLA - Free Report) reported record deliveries for the fourth quarter and exceeded analysts’ estimates. The electric carmaker also met its full-year delivery target. This reflects a continuation of Tesla's strong growth trajectory in the electric vehicle market.
Given this, investors should bet on ETFs having a substantial allocation to this luxury carmaker. These are 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) .
The leading electric carmaker delivered a record 484,507 (461,538 Model 3 and Y and 22,969 Model S and X) cars worldwide in the fourth quarter, beating Street estimates of 483,173. The electric carmaker produced a record 494,989 (476,777 Model 3 and Y, and 18,212 Model S and X) vehicles during the quarter.
Tesla's achievement is notable, particularly given the challenges faced by the automotive industry, including high interest rates and increasing competition in the EV space (read: Should You Fear Slowing Momentum of EVs? ETFs in Focus).
The record-breaking numbers were driven by the introduction of the Cybertruck in the U.S. market in December. Tesla also implemented global price cuts in the fourth quarter, which is marked by a period of economic uncertainty, higher interest rates and shifting consumer sentiment.
For 2023, Tesla delivered 1.8 million vehicles worldwide in 2023, up 38% year over year and met its guidance. Production grew 35% year over year to 1.85 million. However, Tesla is behind the Chinese automaker BYD, which sold 3.02 million new energy vehicles in 2023, including 1.6 million battery-electric passenger cars and 1.4 million hybrid electric models.
Tesla stock has doubled in 2023, outpacing the S&P 500. It currently has a Zacks Rank #4 (Sell) but belongs to a top-ranked Zacks industry (in the top 35%). The stock boasts a Growth Score of B, indicating that it is primed for more growth.
ETFs in Focus
Direxion Daily TSLA Bull 1.5X Shares (TSLL - Free Report)
With AUM of $1 billion, Direxion Daily TSLA Bull 1.5X Shares is by far the largest U.S.-listed single-stock ETF on the market today. It offers 1.5 times (150%) the daily percentage change of the common stock of Tesla, charging 95 bps in annual fees. TSLL trades in an average daily volume of 15 million shares (read: 5 Best-Performing Single-Stock ETFs of 2023).
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 24.8%.
MeetKevin Pricing Power ETF has accumulated $41.7 million in its asset base. It charges 77 bps in annual fees and trades in a lower volume of 12,000 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 17.9% of the assets.
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 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 $3.8 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 14.2% share. Broadline Retail, Hotels, Restaurants & Leisure and Specialty Retail make up the top three sector holdings (read: 5 Sector ETFs That Beat the Market in 2023).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.4 billion in its asset base while trading in a good volume of around 106,000 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.