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.
After the closing bell on Wednesday, investors applauded Tesla Motors (TSLA - Free Report) which posted a surprise profit of $2.90 per share in the third quarter of 2018, easily beating the Zacks Consensus Estimate of a loss of 55 cents. This compares to loss of $2.92 per share a year ago and represents the third quarterly profit in the company’s 15-year history.
The profitability underscores the fulfillment of chief executive Elon Musk's promise to turn the electric carmaker profitable, with Model 3 starting to pay off.
The electric carmaker also outpaced revenue estimates. Revenues of $6.82 billion edged past the Zacks Consensus Estimate of $5.67 billion and grew 128% year over year. Notably, Q3 was a truly historic quarter for Tesla with Model 3 being the best-selling car in the United States in terms of revenues and the 5th best-selling car in terms of volume.
In the first week of October, Tesla revealed that it had produced 80,142 vehicles (53,239 Model 3 and 26,903 Model S and Model X combined) during Q3, up 50% from the all-time record set in the second quarter. It had delivered a total of 83,500 cars, including 55,840 Model 3 (read: Tesla Reports Upbeat Production Data: ETFs in Focus).
In the last week of the third quarter, Tesla produced over 5,300 Model 3 vehicles, meaning that it achieved a production rate of more than 10,000 units per week. The company reiterated its target to deliver 100,000 Model 3 and Model X vehicles this year.
Propelled on blockbuster results, shares of Tesla skyrocketed as much as 14% in aftermarket trading. The stock currently has a Zacks Rank #3 (Hold) and a VGM Score of F.
ETFs to Watch
Tesla earnings have put the spotlight on ETFs having substantial allocation to it. Below we highlight five ETFs that could be great plays for investors to tap this luxury carmaker’s growth (see: all the Alternative Energy ETFs here).
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvement and advancements in scientific research related to robotics, energy storage, innovative materials, alternative energy sources, infrastructure development, space exploration, autonomous vehicles and 3D printing. This approach results in a basket of 38 stocks, with TSLA occupying the top spot holding 12.2%. The product has accumulated $163.1 million in its asset base and charges 75 bps in fees per year. It sees lower volume of about 36,000 shares a day.
Like ARKQ, this is also an actively managed fund and follows the same strategy but provides exposure to genomic companies, industrial innovation companies or Web x.0 companies. In total, the fund holds 38 securities in its basket, with Tesla occupying the top position, holding 11.8% share. The product has accumulated $1.2 billion in its asset base and trades in a good volume of about 333,000 shares. Expense ratio comes in at 0.75% (read: ETFs Surging on Tesla's Wild Ride).
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 39 stocks in its basket, with Tesla occupying the top position at 10.8%. The ETF has amassed $536.4 million in its asset base and trades in a good average daily volume of around 176,000 shares. Expense ratio comes in at 0.75% (read: 5 Tech ETFs That Tumbled Most on Broad Market Rout).
VanEck Vectors Global Alternative Energy ETF
This ETF tracks the Ardour Global Index Extra Liquid, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 30 stocks in its basket with AUM of $79.3 million while charges 63 bps in fees per year. Average daily volume is paltry at about 3,000 shares. Tesla occupies the third position in the basket, with 9.2% allocation. In terms of country exposure, the fund is skewed toward the United States with 60.5% share, while Denmark and China round off the top three spots.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report)
This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $85 million. It charges 60 bps in fees per year, while trades in a light volume of around 27,000 shares per day. In total, the product holds 40 U.S. securities with Tesla Motors taking the second spot at 7.5%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tesla Surprises With Big Q3 Profits: ETFs to Buy
After the closing bell on Wednesday, investors applauded Tesla Motors (TSLA - Free Report) which posted a surprise profit of $2.90 per share in the third quarter of 2018, easily beating the Zacks Consensus Estimate of a loss of 55 cents. This compares to loss of $2.92 per share a year ago and represents the third quarterly profit in the company’s 15-year history.
The profitability underscores the fulfillment of chief executive Elon Musk's promise to turn the electric carmaker profitable, with Model 3 starting to pay off.
The electric carmaker also outpaced revenue estimates. Revenues of $6.82 billion edged past the Zacks Consensus Estimate of $5.67 billion and grew 128% year over year. Notably, Q3 was a truly historic quarter for Tesla with Model 3 being the best-selling car in the United States in terms of revenues and the 5th best-selling car in terms of volume.
In the first week of October, Tesla revealed that it had produced 80,142 vehicles (53,239 Model 3 and 26,903 Model S and Model X combined) during Q3, up 50% from the all-time record set in the second quarter. It had delivered a total of 83,500 cars, including 55,840 Model 3 (read: Tesla Reports Upbeat Production Data: ETFs in Focus).
In the last week of the third quarter, Tesla produced over 5,300 Model 3 vehicles, meaning that it achieved a production rate of more than 10,000 units per week. The company reiterated its target to deliver 100,000 Model 3 and Model X vehicles this year.
Propelled on blockbuster results, shares of Tesla skyrocketed as much as 14% in aftermarket trading. The stock currently has a Zacks Rank #3 (Hold) and a VGM Score of F.
ETFs to Watch
Tesla earnings have put the spotlight on ETFs having substantial allocation to it. Below we highlight five ETFs that could be great plays for investors to tap this luxury carmaker’s growth (see: all the Alternative Energy ETFs here).
ARK Industrial Innovation ETF (ARKQ - Free Report)
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvement and advancements in scientific research related to robotics, energy storage, innovative materials, alternative energy sources, infrastructure development, space exploration, autonomous vehicles and 3D printing. This approach results in a basket of 38 stocks, with TSLA occupying the top spot holding 12.2%. The product has accumulated $163.1 million in its asset base and charges 75 bps in fees per year. It sees lower volume of about 36,000 shares a day.
ARK Innovation ETF (ARKK - Free Report)
Like ARKQ, this is also an actively managed fund and follows the same strategy but provides exposure to genomic companies, industrial innovation companies or Web x.0 companies. In total, the fund holds 38 securities in its basket, with Tesla occupying the top position, holding 11.8% share. The product has accumulated $1.2 billion in its asset base and trades in a good volume of about 333,000 shares. Expense ratio comes in at 0.75% (read: ETFs Surging on Tesla's Wild Ride).
ARK Web x.0 ETF (ARKW - Free Report)
This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 39 stocks in its basket, with Tesla occupying the top position at 10.8%. The ETF has amassed $536.4 million in its asset base and trades in a good average daily volume of around 176,000 shares. Expense ratio comes in at 0.75% (read: 5 Tech ETFs That Tumbled Most on Broad Market Rout).
VanEck Vectors Global Alternative Energy ETF
This ETF tracks the Ardour Global Index Extra Liquid, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 30 stocks in its basket with AUM of $79.3 million while charges 63 bps in fees per year. Average daily volume is paltry at about 3,000 shares. Tesla occupies the third position in the basket, with 9.2% allocation. In terms of country exposure, the fund is skewed toward the United States with 60.5% share, while Denmark and China round off the top three spots.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report)
This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $85 million. It charges 60 bps in fees per year, while trades in a light volume of around 27,000 shares per day. In total, the product holds 40 U.S. securities with Tesla Motors taking the second spot at 7.5%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>