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Capitalize on Tesla's Robotaxi Momentum With These ETFs
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Tesla (TSLA) jumped as much as 10% on Monday following the long-anticipated launch of its driverless robotaxi service in Austin, TX — a pivotal move in the electric carmaker’s push toward full autonomy.
Investors can capitalize on the growth with ETFs having a substantial allocation to this luxury carmaker. These include Simplify Volt TSLA Revolution ETF (TESL - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , The Nightview Fund (NITE - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) .
The rollout has begun with 10 to 20 autonomously operating Model Y vehicles in the city, with plans for a rapid expansion to additional cities and a potential fleet of hundreds of thousands of vehicles by the end of next year. Wedbush analyst Dan Ives noted that robotaxis and Tesla’s self-driving software could potentially double the company’s market capitalization by the end of 2026 (read: Time to Ride Tesla ETFs on Recent Stock Rebound & Robotaxi Launch?).
With this debut, Tesla entered into direct competition with Alphabet-owned Waymo, which already operates commercial autonomous taxi services in multiple U.S. cities. Tesla's move is seen as a bold attempt to prove real-world viability in an industry still grappling with safety concerns, technical challenges and regulatory scrutiny.
The launch also represents a strategic pivot for Tesla amid declining vehicle sales and growing investor criticism of Musk’s leadership. The company is increasingly focusing on next-generation technologies, including autonomous driving and humanoid robotics. Musk has stated his ambition to expand the service to multiple U.S. cities by the end of this year, aiming for “millions of Teslas operating fully autonomously in the second half of next year.”
Despite Monday’s rally, Tesla shares remain down about 20% year to date.
Analysts’ View
The electric carmaker seems well-positioned, with many analysts seeing robotaxis as a multi???trillion-dollar addressable market. Ark Invest forecasts a $951???billion opportunity by 2029, while Wedbush projects TSLA’s valuation could double to $2???trillion by late 2026.
UBS analyst raised the price target on Tesla to $215 from $190, citing the company’s robotaxi opportunity. UBS projects that Tesla could develop a robotaxi fleet of approximately 2.3 million vehicles by 2040, potentially generating around $200 billion in revenues if the company successfully navigates technological, regulatory, and network-building challenges. However, the UBS analyst believes the autonomous ride-hailing opportunity is already priced into the stock.
The company may also encounter substantial hurdles in rapidly scaling the Robotaxi service.
Simplify Volt TSLA Revolution ETF uses an active management strategy to capture the potential of Tesla’s stock price movements while implementing an advanced options overlay to manage downside risks. It has an expense ratio of 1.20% and AUM of $31.1 million. TESL trades in volume of 42,000 shares per 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 51 securities in its basket, Tesla takes the second spot with 17.1% of the assets. Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $21.7 billion and charges 8 bps in annual fees. It trades in an average daily volume of 4.2 million shares and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Consumer Rebound Boosts Outlook for Discretionary ETFs).
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. Of these, Tesla occupies the second position with a 16.1% allocation. Vanguard Consumer Discretionary ETF charges investors 9 bps in annual fees, whereas volume is good at nearly 66,000 shares a day. The product has managed about $6 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling 5-year period. It holds 22 stocks in its basket, with Tesla occupying the top position at 15.6% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 5,000 shares. It has accumulated $25.4 million in its asset base.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 262 stocks in its basket. Of these, TSLA takes the second spot with a 16.1% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.7 billion in its asset base while trading in a good volume of around 114,000 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 #4 (Sell) with a Medium risk outlook.
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Capitalize on Tesla's Robotaxi Momentum With These ETFs
Tesla (TSLA) jumped as much as 10% on Monday following the long-anticipated launch of its driverless robotaxi service in Austin, TX — a pivotal move in the electric carmaker’s push toward full autonomy.
Investors can capitalize on the growth with ETFs having a substantial allocation to this luxury carmaker. These include Simplify Volt TSLA Revolution ETF (TESL - Free Report) , Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) , The Nightview Fund (NITE - Free Report) and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) .
The rollout has begun with 10 to 20 autonomously operating Model Y vehicles in the city, with plans for a rapid expansion to additional cities and a potential fleet of hundreds of thousands of vehicles by the end of next year. Wedbush analyst Dan Ives noted that robotaxis and Tesla’s self-driving software could potentially double the company’s market capitalization by the end of 2026 (read: Time to Ride Tesla ETFs on Recent Stock Rebound & Robotaxi Launch?).
With this debut, Tesla entered into direct competition with Alphabet-owned Waymo, which already operates commercial autonomous taxi services in multiple U.S. cities. Tesla's move is seen as a bold attempt to prove real-world viability in an industry still grappling with safety concerns, technical challenges and regulatory scrutiny.
The launch also represents a strategic pivot for Tesla amid declining vehicle sales and growing investor criticism of Musk’s leadership. The company is increasingly focusing on next-generation technologies, including autonomous driving and humanoid robotics. Musk has stated his ambition to expand the service to multiple U.S. cities by the end of this year, aiming for “millions of Teslas operating fully autonomously in the second half of next year.”
Despite Monday’s rally, Tesla shares remain down about 20% year to date.
Analysts’ View
The electric carmaker seems well-positioned, with many analysts seeing robotaxis as a multi???trillion-dollar addressable market. Ark Invest forecasts a $951???billion opportunity by 2029, while Wedbush projects TSLA’s valuation could double to $2???trillion by late 2026.
UBS analyst raised the price target on Tesla to $215 from $190, citing the company’s robotaxi opportunity. UBS projects that Tesla could develop a robotaxi fleet of approximately 2.3 million vehicles by 2040, potentially generating around $200 billion in revenues if the company successfully navigates technological, regulatory, and network-building challenges. However, the UBS analyst believes the autonomous ride-hailing opportunity is already priced into the stock.
The company may also encounter substantial hurdles in rapidly scaling the Robotaxi service.
ETFs to Tap
Simplify Volt TSLA Revolution ETF (TESL - Free Report)
Simplify Volt TSLA Revolution ETF uses an active management strategy to capture the potential of Tesla’s stock price movements while implementing an advanced options overlay to manage downside risks. It has an expense ratio of 1.20% and AUM of $31.1 million. TESL trades in volume of 42,000 shares per 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 51 securities in its basket, Tesla takes the second spot with 17.1% of the assets. Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $21.7 billion and charges 8 bps in annual fees. It trades in an average daily volume of 4.2 million shares and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Consumer Rebound Boosts Outlook for Discretionary ETFs).
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 296 stocks in its basket. Of these, Tesla occupies the second position with a 16.1% allocation. Vanguard Consumer Discretionary ETF charges investors 9 bps in annual fees, whereas volume is good at nearly 66,000 shares a day. The product has managed about $6 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
The Nightview Fund (NITE - Free Report)
The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling 5-year period. It holds 22 stocks in its basket, with Tesla occupying the top position at 15.6% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 5,000 shares. It has accumulated $25.4 million in its asset base.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 262 stocks in its basket. Of these, TSLA takes the second spot with a 16.1% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.7 billion in its asset base while trading in a good volume of around 114,000 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 #4 (Sell) with a Medium risk outlook.